Question

-0 6-4 6-12 Reporting Net Sales with Credit Sales and Sales Discounts During the months of January and February, Solitare Corporation sold goods to three cuero The sequence of events was as follows: Jan. 6 Sold goods for $100 to Wizard Inc. with terms 2/10, n/30. The good Solitare $70. 6 Sold goods to Spyder Corp. for $80 with terms 2/10, n/30. The goods cool Solitare $60. Collected cash due from Wizard Inc. Feb. 2 Collected cash due from Spyder Corp. 28 Sold goods for $50 to Bridges with terms 2/10, n/45. The goods cost Solitare $30, Required: 14 Assuming that Sales Discounts are reported as contra-revenue, compute Net Sales for the months ended February 28.

Answer 1

Answer:

Sales revenue	$230
(Less): Sales discount	($2)
Net Sales	$228

Explanations:

i.Total Sales

Sold goods to Wizard Inc.	$100
Sold goods to Spyder Corp.	$80
Sold goods to Bridges	$50
Total Sales	$230

ii. Sales Discount

For every sales given that terms 2/10. It means if the customer paid within 10 days then 2% sales discount will apply.

Wizard Inc paid within 10 days. So sales discount will apply only to the 'Wizard Inc.'

Therefore Sales discount = $100 x 2% = $2