Newark Company has provided the following information:
Cash sales,$450,000
Credit sales,$1,350,000
Selling and administrative expenses,$330,000
Sales returns and allowances,$90,000
Depreciation expense,$101,000
Gross profit,$1,360,000
Increase in accounts receivable,$55,000
Bad debt expense,$33,000
Sales discounts,$43,000
How much are Newark's net sales?

Question

Newark Company has provided the following information:
Cash sales,$450,000
Credit sales,$1,350,000
 Selling and administrative expenses,$330,000
 Sales returns and allowances,$90,000
 Depreciation expense,$101,000
 Gross profit,$1,360,000
Increase in accounts receivable,$55,000
Bad debt expense,$33,000
 Sales discounts,$43,000
How much are Newark's net sales?

Quizplus · Accepted Answer

Net sales ($1,667,000) equals ($450,000 + $1,350,000 - $90,000 - $43,000).

Newark Company Has Provided the Following Information