The Tanner Company has provided the following information after year-end adjustments: • Allowance for doubtful accounts increased $19,000.
• Accounts receivable increased $390,000 during the year.
• Accounts written off as uncollectible totaled $20,000.
• Sales totaled $2,500,000.
• Sales discounts were $100,000.
How much were Tanner's net sales?
A) $1,990,000.
B) $2,380,000.
C)$2,400,000.
D)$2,420,000.

Question

Quizplus · Accepted Answer

Net sales are calculated by subtracting sales discounts and allowances for doubtful accounts from total sales. Therefore, net sales = $2,500,000 - $100,000 - $19,000 = $2,400,000.

The Tanner Company Has Provided the Following Information After Year-End