E6-10 Reporting Net Sales after Sales Discounts [LO 6-4] During the months of Ja
ID: 2408444 • Letter: E
Question
E6-10 Reporting Net Sales after Sales Discounts [LO 6-4]
During the months of January and February, Solitare Corporation sold goods to three customers. The sequence of events was as follows:
Required:
Compute the total revenue Solitare would report over the two months.
Jan. 6 Sold goods for $180 to Wizard Inc. with terms 2/30, n/60. The goods cost Solitare $74. 6 Sold goods to Spyder Corp. for $92 with terms 1/10, n/30. The goods cost Solitare $64. 14 Collected cash for the amount due from Wizard Inc. Feb. 28 Collected cash for the amount due from Spyder Corp.Explanation / Answer
Calculate total revenue
Total sales = 180+92 = 272
Sales discount = 180*2% = 3.60
Total revenue = 272-3.60 = $268.40
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