The following transactions were selected from among those completed by Bear\'s R

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. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Net Sales

Explanation / Answer

SOLUTION

Particulars Calculations Amount ($) Sales revenue $350 + $3,500 + $5,500 9,350 Less: Sales returns and allowances $5,500/10 (550) Less: Sales discounts ($5,500-$550)*3% (148.50) Net sales 8,651.50

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