The following transactions were selected from the records of Evergreen Company:

Question

The following transactions were selected from the records of Evergreen Company: July 12 Sold merchandise to Wally Butler, who paid the $1,200 purchase with cash. The goods cost 15 Sold merchandise to Claudio's Chair Company at a selling price of $5,200 on terms 3/10, n/30. 20 Sold merchandise to Otto's Ottomans at a selling price of $3,100 on terms 3/10, n/30. The goods 23 Collected payment from Claudio's Chair Company from the July 15 sale. Evergreen Company $700. The goods cost Evergreen Company $3,600. cost Evergreen Company $2,000. Aug. 25 Collected payment from Otto's Ottomans from the July 20 sale. Required: Assuming that Sales Discounts are reported as contra-revenue, compute Net Sales for the two months ended August 31. (Round your answer to 2 decimal places.) Net Sales

Explanation / Answer

Answer

No.

Accounts Title & explanation

Debit

Credit

Jul-12

Cash

$          1,200.00

Sales Revenue

$                  1,200.00

(sales made on cash)

Jul-12

Cost of Goods Sold

$             700.00

Inventory

$                      700.00

(Inventory amount adjusted)

Jul-15

Accounts receivables

$          5,200.00

Sales Revenue

$                  5,200.00

(Sales made on account)

Jul-15

Cost of Goods Sold

$          3,600.00

Inventory

$                  3,600.00

(Inventory amount adjusted)

Jul-20

Accounts receivables

$          3,100.00

Sales Revenue

$                  3,100.00

(Sales made on account)

Jul-20

Cost of Goods Sold

$          2,000.00

Inventory

$                  2,000.00

(Inventory amount adjusted)

Jul-23

Cash

$          5,044.00

Sales Discount

$             156.00

Accounts receivables

$                  5,200.00

(cash received within discounting term of 10 days)

Aug-25

Cash

$          3,100.00

Sales Discount

$                       -  

Inventory

$                  3,100.00

(cash received After discounting term of 10 days)

Sales

Jul-12

$      1,200.00

Jul-15

$      5,200.00

Jul-20

$     3,100.00

Total Sales

$      9,500.00

Sales Discount - Jul 23

$       (156.00)

Net Sales

$      9,344.00

No.

Accounts Title & explanation

Debit

Credit

Jul-12

Cash

$          1,200.00

Sales Revenue

$                  1,200.00

(sales made on cash)

Jul-12

Cost of Goods Sold

$             700.00

Inventory

$                      700.00

(Inventory amount adjusted)

Jul-15

Accounts receivables

$          5,200.00

Sales Revenue

$                  5,200.00

(Sales made on account)

Jul-15

Cost of Goods Sold

$          3,600.00

Inventory

$                  3,600.00

(Inventory amount adjusted)

Jul-20

Accounts receivables

$          3,100.00

Sales Revenue

$                  3,100.00

(Sales made on account)

Jul-20

Cost of Goods Sold

$          2,000.00

Inventory

$                  2,000.00

(Inventory amount adjusted)

Jul-23

Cash

$          5,044.00

Sales Discount

$             156.00

Accounts receivables

$                  5,200.00

(cash received within discounting term of 10 days)

Aug-25

Cash

$          3,100.00

Sales Discount

$                       -  

Inventory

$                  3,100.00

(cash received After discounting term of 10 days)

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