The following transactions were selected from the records of OceanView Company:

Question

The following transactions were selected from the records of OceanView Company: July 12 Sold merchandise to Customer R, who charged the $3,200 purchase on his Visa credit card. Visa charges OceanView a 2 percent credit card fee. 15 Sold merchandise to Customer S at an invoice price of $10,100; terms 3/10, n/30. 20 Sold merchandise to Customer T at an invoice price of $4,700; terms 3/10, n/30. 23 Collected payment from Customer S from July 15 sale. Aug. 25 Collected payment from Customer T from July 20 sale. Required: Assuming that Sales Discounts and Credit Card Discounts are treated as contra-revenues, compute net sales for the two months ended August 31.

Explanation / Answer

Jul-12 Invoice 3200 Credit Card fee 64 Net 3136 july Invoice 10100 Discount 3% payment made before 10days 303 Net 9797 Invoice 4700 Aug-23 Discount 0 Net 4700 Net Sales 17633

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