Question

The following transactions were selected from among those completed by Bear’s Retail Store:

Nov.		20		Sold two items of merchandise to Cheryl Jahn, who paid the $460 (total) sales price in cash. The goods cost Bear’s $350.
		25		Sold 20 items of merchandise to Vasko Athletics at a selling price of $4,400 (total); terms 3/10, n/30. The goods cost Bear’s $2,700.
		28		Sold 10 identical items of merchandise to Nancy’s Gym at a selling price of $6,400 (total); terms 3/10, n/30. The goods cost Bear’s $4,200.
		29		Nancy’s Gym returned one of the items purchased on the 28th. The item was in perfect condition and credit was given to the customer.
Dec.		6		Nancy’s Gym paid the account balance in full.
		30		Vasko Athletics paid in full for the invoice of November 25.

Required:

Compute the net sales revenue to be reported over the two months. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Answer 1

Answer: Net Sales Revenue to be reported over the two months = $10447.20 Workings $11,260 ($640)* Sales Revenue($460 + $4400 + $6400) = Less: sales return and allowance $6400 * 1/10 from Nancy's) Less: Sales discounts ($6400 * 9/10 *3% from Nancy's) ($172.80)** Net Sales $10,447.20 *Nancy's Gym returned 1 of the 10 items purchased at a total cost of $6,400 (which equals $640 per item) **Nancy's Gym paid 8 days after the purchase (within the discount period). Vasko paid 35 days after the purchase (outside the discount period)