Question

A company had the following partial list of account balances at year-end: Sales returns and allowances $ 500 Account Receivables 9,000 Sales Discount 700 Sales Revenue 57, 200 Selling and Administrative Expense 300 The amount of net sales reported on the income statement would be:

Answer 1

Answer:

$56,000

Explanation:

The computation of net sales is shown below.

For the net sales reported, we'll add the sales revenue and deduct the sales return and allowances with sales discount

Net sales reported = Sales revenue - sales return and allowance - sales discount

= $57,200 - $500 - $700

= $56,000