The following transactions were selected from among those completed by Cadence R

Question

The following transactions were selected from among those completed by Cadence Retailers in 2013: Nov. 20 Sold 20 items of merchandise to Customer B at an invoice price of $6,100 (total); terms 4/10, n/30. 25 Sold two items of merchandise to Customer C, who charged the $700 sales price on her Visa credit card. Visa charges Cadence Retailers a 2 percent credit card fee. 28 Sold 10 identical items of merchandise to Customer D at an invoice price of $9,400 (total); terms 4/10, n/30. 29 Customer D returned one of the items purchased on the 28th; the item was defective, and credit was given to the customer. Dec. 6 Customer D paid the account balance in full. 20 Customer B paid in full for the invoice of November 20, 2013. Required: Assume that Sales Returns and Allowances, Sales Discounts, and Credit Card Discounts are treated as contra-revenues; compute net sales for the two months ended December 31, 2013. (Do not round your intermediate calculations. Round your answer to the nearest whole dollar amount.)

Explanation / Answer

Answer: Calculation of the net sales for the two months ended December 31, 2013:

Particulars Amount ($) Sales Revenue 16200 6100+700+9400 Less: Sales return and allowances 940 Less: Credit card fees 14 700*2% Less: sales discounts 338.4 (9400-940)*4% Net sales 14907.6

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