[The following information applies to the questions displayed below.] Valley Com

Question

[The following information applies to the questions displayed below.] Valley Company’s adjusted trial balance on August 31, 2015, its fiscal year-end, follows. Debit Credit Merchandise inventory $ 40,500 Other (noninventory) assets 162,000 Total liabilities $ 46,778 K. Valley, Capital 133,065 K. Valley, Withdrawals 8,000 Sales 277,020 Sales discounts 4,238 Sales returns and allowances 18,283 Cost of goods sold 106,939 Sales salaries expense 37,952 Rent expense—Selling space 13,020 Store supplies expense 3,324 Advertising expense 23,547 Office salaries expense 34,628 Rent expense—Office space 3,324 Office supplies expense 1,108 Totals $ 456,863 $ 456,863 On August 31, 2014, merchandise inventory was $32,684. Supplementary records of merchandising activities for the year ended August 31, 2015, reveal the following itemized costs. Invoice cost of merchandise purchases $ 119,070 Purchase discounts received 2,500 Purchase returns and allowances 5,715 Costs of transportation-in 3,900

Compute the company’s net sales for the year.

Compute the company’s net sales for the year.

Explanation / Answer

Net sales = total revenue, less cost of sales returns & allowances, and discounts.

= 277020 - 18283 - 4238 = $254,499

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