Basically Beautiful Wholesaler sells beauty products to salons and spas. The company's sales for the period ended December 31, 2020 were $1,175,000. The cost of sales are estimated at 60% of revenues, with an estimated return rate of 5%. Returned product is expected to be scrapped. All sales are made on account.
Instructions
a) Prepare Basically Beautiful's partial Statement of Income.
b) Record Basically Beautiful's sales for the period.

Question

Quizplus · Accepted Answer

The Answer of Basically Beautiful Wholesaler sells beauty products to salons and spas. The company's sales for the period ended December 31, 2020 were $1,175,000. The cost of sales are estimated at 60% of revenues, with an estimated return rate of 5%. Returned product is expected to be scrapped. All sales are made on account.
Instructions
a) Prepare Basically Beautiful's partial Statement of Income.
b) Record Basically Beautiful's sales for the period.

Basically Beautiful Wholesaler Sells Beauty Products to Salons and Spas