Use this information to answer the following question. In addition,beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.
Net sales for the period were
A) $303,000.
B) $273,000.
C) $293,000.
D) $213,000.

Question

Use this information to answer the following question.  In addition,beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.
Net sales for the period were
A) $303,000. 
B) $273,000. 
C) $293,000. 
D) $213,000.

Quizplus · Accepted Answer

We can use the formula: Net Sales = Gross Sales - Sales Returns and Allowances. 
Given that Gross Sales were $300,000 and Sales Returns and Allowances were $7,000 (as given in the image), we can calculate Net Sales as:
Net Sales = $300,000 - $7,000 = $293,000
Therefore, the correct answer is C.

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