Question

9 11.11 points The following transactions were selected from among those completed by Bennett Retailers in November and December: Nov. 20 sold 20 items of merchandise to Customer B at an invoice price of $6,400 (total); terma 3/10, n/30. 25 sold two items of merchandise to Customer c, who charged the $400 (total) sales price on her Visa credit card. Visa charges Bennett Retailers a 1 percent credit card fee. 28 Sold 10 identical Items of merchandise to Customer D at an invoice price of $9,300 (total); terms 3/10, 1/30. 29 Customer 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.) Answer is complete but not entirely correct. Net sales 17,285

Answer 1

Net sales = 14915 dollars

Above answer is explained below in detail:

Net sales is the value which we can obtain by making substantial deductions from gross sales. These deductions involves discounts, sales returns etc.,

calculation of net sales- Gross sala Revenue $16100 leui . sales Rehow and allowance -$930 leur sales discount - $ 251 lenin credit card discomtu - $4 Net sala $ 14915 working note: Gross salee => Total sales to customers B, C, D (& 6400 + $ 400 + $ 9300) $ 16 100 Saku Retory and allowances =) Customer schored one unit =) 9300 x 1/10 = $930 saki disconte ( $ 9300 - $930) x 3.1. $ 251 (redit card discomte = (400 x 1.1.)

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