Travelli Co.sold merchandise to Trapani Co.on account,$17,000,terms 2/15,net 45.The cost of the merchandise sold is $15,400.Travelli Co.issued an allowance for $1,750 for merchandise returned that originally cost $1,400.Trapani Co.paid the invoice within the discount period.What is amount of net sales from the above transactions?

Question

Quizplus · Accepted Answer

The net sales can be calculated as follows:
Original Sales = $17,000
Less: Cost of Merchandise Sold = $15,400
Add: Merchandise Returned = $1,400
Less: Allowance for Merchandise Returned = $1,750
Net Sales = $17,000 - $15,400 + $1,400 - $1,750 
Net Sales = $14,945

Therefore, the correct answer is option C.