Question

Which of the following best describes credit sales? Multiple Choice Cash sales to customers that are new to the company. Sale
$22.000; 9 A company reported the following amounts at the end of the year: total sales revenue = $624,000; sales allowances
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Answer #1

Solution 1:

Sales to customer on account best describes credit sales.

Hence 3rd option is correct.

Solution 2:

Sales discount = Total sales revenues - Sales allowances - Sales returns - Net revenues

= $624,000 - $6,000 - $22,000 - $588,000

= $8,000

Hence 2nd option is correct.

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