The following transactions were selected from among those completed by Cadence R
ID: 2516232 • Letter: T
Question
The following transactions were selected from among those completed by Cadence Retailers November and December: Nov. 20 Sold 20 items of merchandise to Customer B at an invoice price of $5,500 (total); terms 2/10, n/30. 25 Sold two items of merchandise to Customer C, who charged the $800 sales price on her Visa credit card. Visa charges Cadence Retailers a 2 percent credit card fee. 28 Sold 10 identical items of merchandise to Customer D at an invoice price of $9,600 (total); terms 2/10, n/30. 29 Customer D returned one of the items purchased on the 28th; the item was defective, and credit was given to the customer. Dec. 6 Customer D paid the account balance in full. 20 Customer B paid in full for the invoice of November 20. Required: Assume that Sales Returns and Allowances, Sales Discounts, and Credit Card Discounts are treated as contra-revenues; compute net sales for the two months ended December 31. (Do not round your intermediate calculations. Round your answer to the nearest whole dollar amount.) Required: Assume that Sales Returns and Allowances, Sales Discounts, and Credit Card Discounts are treated as contra-revenues; compute net sales for the two months ended December 31
Explanation / Answer
Answer:
Net Sales=$14,751.2
Working notes for the above answer:
Net sales
(5500+800+9600)
15900
Less:
Sales Return and allowance
(1/9*9600 from D)
-960
Sales Discount
(9/9*9600*2%)
-172.8
Credit card fees
(800 from c*2%)
-16
Net sales
14751.2
Net sales
(5500+800+9600)
15900
Less:
Sales Return and allowance
(1/9*9600 from D)
-960
Sales Discount
(9/9*9600*2%)
-172.8
Credit card fees
(800 from c*2%)
-16
Net sales
14751.2
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