YMN had sales of $1,500,000, including: •$25,000 of goods shipped on consignment to an unrelated company on December 28, 2012 and received by that company on December 31, 2012
•$20,000 of goods shipped F.O.B. shipping point to a different unrelated party on December 31, 2012 and received on January 2, 2013.
On its income statement, what amount of net sales should YMN record for 2012?

Question

Quizplus · Accepted Answer

Net sales should only include sales that occurred during the fiscal year, so the $25,000 of goods shipped on consignment on December 28, 2012, and the $20,000 of goods shipped F.O.B. shipping point on December 31, 2012, should not be included. 
Therefore, YMN's net sales for 2012 would be $1,500,000 - $25,000 - $20,000 = $1,455,000. 
Option B is the closest to this amount.

YMN Had Sales of $1,500,000, Including: •$25,000 of Goods Shipped