Question

The following transactions were selected from among those completed by Bear’s Retail Store:

Nov. 20	Sold two items of merchandise to Cheryl Jahn, who paid the $350 sales price in cash. The goods cost Bear’s $450.
25	Sold 20 items of merchandise to Vasko Athletics at a selling price of $3,500 (total); terms 3/10, n/30. The goods cost Bear’s $2,250.
28	Sold 10 identical items of merchandise to Nancy’s Gym at a selling price of $5,500 (total); terms 3/10, n/30. The goods cost Bear’s $3,750.
29	Nancy’s Gym returned one of the items purchased on the 28th. The item was in perfect condition and credit was given to the customer.
Dec. 6	Nancy’s Gym paid the account balance in full.
30	Vasko Athletics paid in full for the invoice of November 25.

Required:

Assuming that Sales Returns and Sales Discounts are reported as contra-revenues, compute Net Sales for the two months ended December 31.

Answer 1

Ans- Net Sales Schedule

For the two months ended December 31

Details	Amount ($)
Cash Sales	350
Add: Credit Sales Revenue ($3,500+$5,500)	9,000
Less: Sales Returns and Allowances ($5,500/10)	(550)
Sales Discount	(148.50)
Net Sales	$8,651.50

Credit Sales Revenue:-

Sales on Nov.25=$3,500

Sales on Nov.28= $5,500

Total Sales Revenue =$9,000

Actual Sales= Sales- Sales Return

=$5,500-$550

=$4,950

Sales Discount= $4,950*3/100

=$148.50