On November 1, 2015, Wrenns Martch sold merchandise with a cost of $5,000 for $10,000, FOB destination, with payment terms of 3/10, n/40. Wrenns paid transportation costs of $100. Of these, merchandise sold for $3,000(with a cost of $1,500)was returned on November 6. The company received the payment for the balance amount on November 10, 2015. Calculate the Net sales revenue.
A)$6,790
B)$7,000
C)$4790
D)$7790

Question

Quizplus · Accepted Answer

The net sales revenue is calculated as follows: Initial sales of $10,000 minus returns of $3,000 equals $7,000. The customer paid within the discount period, so a 3% discount on the remaining $7,000 is $210. Therefore, the net sales revenue is $7,000 - $210 = $6,790.

On November 1, 2015, Wrenns Martch Sold Merchandise with a Cost