Simple Inc. had sales of $1,500,000, including: •$30,000 of goods sold that were on consignment from an unrelated company on December 28, 2012
•$10,000 of goods shipped F.O.B shipping point on December 28, 2012.
•$20,000 of goods shipped F.O.B. destination point on December 31, 2012.
On its income statement, what amount of net sales should Simple Inc. record for 2012?
A)$1,440,000
B)$1,470,000
C)$1,480,000
D)$1,490,000

Question

Quizplus · Accepted Answer

To calculate net sales, we need to subtract the amount of goods sold on consignment and the cost of shipping F.O.B. shipping point since they are not Simple Inc.'s responsibility until they are delivered. 
Net Sales = Sales - (Goods on consignment + F.O.B. shipping point)
Net Sales = $1,500,000 - ($30,000 + $10,000) = $1,460,000
However, the goods shipped F.O.B. destination point are Simple Inc.'s responsibility until they are delivered, so they should be included in net sales.
Net Sales = $1,460,000 + $20,000 = $1,480,000  
Therefore, the correct answer is C.