Need help with the errors and computing net sales. Please show formula on net sa

Question

Need help with the errors and computing net sales. Please show formula on net sales.

E6-27 (Supplement) Recording Credit Sales, Sales Discounts, Sales Returns, and Credit Card Sales The following transactions were selected from among those completed by Hailey Retailers in the current year: Nov. 20 Sold two items of merchandise to Customer B, who charged the $550 sales price on her Visa credit card. Visa charges Hailey a 2 percent credit card fee. 25 Sold 14 items of merchandise to Customer C at an invoice price of $2,800 (total); terms 2/10, n/30 28 Sold 12 identical items of merchandise to Customer D at an invoice price of S7,920 (total); terms 2/10, n/30 30 Customer D returned one of the items purchased on the 28th; the item was defective, and credit was given to the customer. Dec. 06 Customer D paid the account balance in full 30 Customer C paid in full for the invoice of November 25. Required 1-a. Prepare the appropriate journal entry for each of these transactions, assuming the company records sales revenue under the gross method. Do not record cost of goods sold. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to nearest whole dollar.) Answer is complete but not entirely correct. No Date General Journal Debit Credit November 20Cash 539 Credit card discount Sales revenue 550 November 25 ts receivable (Customer C) 2,800 Sales revenue 2.800 November 28 receivable (Customer D) 7,920 Sales revenue 7,920 November 30 Sales returns and allowances 660 Accounts receivable (Customer D) 660 7,761 158 December 06 Cash Sales discounts Accounts receivable (Customer D) 7.920 December 30Cash 2800 Accounts receivable (Customer C) 2.800 1-b. Compute Net Sales. (Round your answers to nearest whole dollar.) t sales

Explanation / Answer

6-Dec Cash 7115 Sales discounts 145 =7260*2%          Accounts receivable (Customer D) 7260 =7920-660 b Net sales=550+2800+7920-660-145= $10465 Note: If credit card discount is also consdered contra revenue, net sales will be $10454

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