The preparation of the Sales section of the income statement for Blue Spruce Corp. is as follows:
BLUE SPRUCE CORP.
<h3>Income Statement</h3>
For the year ended October 31, 2022
Sales Revenue $908,400
Sales Returns and Allowances (20,900)
Sales Discounts (14,700)
Net sales revenue $872,800
<h3>How makes up the net sales revenue?</h3>
The net sales revenue represents the gross revenue minus sales returns and allowances and sales discounts.
In most jurisdictions, the sales discount account is reported on the income statement as a contra revenue account. This implies that sales discounts are directly deducted from the gross sales and do not appear in the expense section nor the notes to the sales or revenue.
<h3>Data and Calculations:</h3>
Sales Revenue $908,400
Freight-Out $12,600
Sales Returns and Allowances $20,900
Sales Discounts $14,700
Thus, the preparation of the sales section of the income statement for Blue Spruce Corp. shows a net sales revenue of $872,800.
Learn more about the sales section of the income statement at brainly.com/question/24498019
