Question

Newark Company has provided the following information:
Time Remaining 53 minutes 28 seconds
•
Cash sales, $620,000
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Credit sales, $1,520,000
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Selling and administrative expenses, $500,000
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Sales returns and allowances, $107,000
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Gross profit, $1,530,000
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Increase in accounts receivable, $72,000
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Bad debt expense, $50,000
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Sales discounts, $60,000
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Net income, $1,030,000
How much are Newark's net sales?
Multiple Choice
$2,140,000.
$1,923,000.
$1,973,000.
$2,068,000.
Question
McGraw Hill Education
Question 8 of 40 Total

Answer 1

Newark's net sales = $1,973,000
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Statement showing Computations
Particulars	Amount
Cash Sales	620,000.00
Credit Sales	1,520,000.00
Gross Sales	2,140,000.00
Less Sales returns and allowances	(107,000.00)
Less Sales discounts	(60,000.00)
Newark's net sales	1,973,000.00