Question

The following transactions were selected from among those completed by Cadence Retailers November and December: Nov. 20 Sold 20 items of merchandise to Customer B at an Invoice price of $6.000 (total): terms 2/10. n/30 25 Sold two items of merchandise to Customer C, who charged the $700 sales price on her Visa credit card. Visa charges Cadence Retailers a 1 percent credit card fee. 28 Sold 10 identical items of merchandise to Customer D at an invoice price of $9,600 (total); terms 2/10, 1/30. 29 Customer returned one of the items purchased on the 28th the item was defective, and credit was given to the customer. Dec. 6 Customer D paid the account balance in full. 20 Customer B paid in full for the invoice of November 20. Required: Assume that Sales Returns and Allowances, Sales Discounts, and Credit Card Discounts are treated as contra-revenues; compute net sales for the two months ended December 31. (Do not round your intermediate calculations. Round your answer to the nearest whole dollar amount.) Net sales

Answer 1

Net sales	Sales revenue - Sales return and allowance - Sales discount - Credit card discounts
Calculation of net sales is shown below
Gross sales	$16,300	6000+700+9600
Less: Sales return and allowances	$960	9600/10
Less: Sales discount	$173	(9600-960)*2%
Less: Credit card fee	$7	700*1%
Net sales	$15,160
Thus, net sales is $15,160