YMN had sales of $1,500,000, including: •$25,000 of goods shipped on consignment to an unrelated company on December 28, 2021 and received by that company on December 31, 2021
•$20,000 of goods shipped F.O.B. shipping point to a different unrelated party on December 31, 2021 and received on January 2, 2022.
On its income statement, what amount of net sales should YMN record for 2021?
A)$1,455,000
B)$1,475,000
C)$1,525,000
D)$1,545,000

Question

Quizplus · Accepted Answer

YMN should not include the $25,000 of goods shipped on consignment in its net sales for 2021 since it has not yet been received by the customer by the end of the year. Therefore, net sales should be $1,475,000 ($1,500,000 - $25,000 consignment shipment + $20,000 F.O.B. shipping point shipment).

YMN Had Sales of $1,500,000, Including: •$25,000 of Goods Shipped