Ribbitt Frog Company sold $2,400,000 worth of merchandise, had $200,000 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 = $2,400,000 - $200,000 - $44,000*
X = $2,156,000
*Sales discounts = ($2,400,000 - $200,000) x 0.02 = $44,000

Ribbitt Frog Company Sold $2,400,000 Worth of Merchandise, Had $200,000