Woofer Company sold $1,800,000 worth of merchandise, had $150,000 returned, and then the balance was received during the 2% discount period. What were the company's net sales?

Question

Quizplus · Accepted Answer

Net Sales = Gross sales revenue - Sales returns and allowances - Sales discounts*
X = $1,800,000 - $150,000 - $33,000*
X = $1,617,000
*Sales discounts = ($1,800,000 - $150,000) x 0.02 = $33,000

Woofer Company Sold $1,800,000 Worth of Merchandise, Had $150,000 Returned