Question

Sherman’s Jewelry has the following transactions during the year: total jewelry sales = $550,000; sales discounts = $10,000; sales returns = $30,000; sales allowances = $10,000. In addition, at the end of the year, there are $5,000 worth of accounts receivable that Sherman’s estimates will not be collected.

Calculate Sherman’s net sales for the year, taking into account the provided information.

Answer 1

To calculate Sherman's net sales for the year, subtract the sales discounts, returns, and allowances from the total jewelry sales.

Step-by-step explanation:

To calculate Sherman's net sales for the year, we need to subtract the sales discounts, sales returns, and sales allowances from the total jewelry sales. Net sales represents the actual revenue received from the sales after accounting for these deductions.

Therefore, Sherman's net sales for the year can be calculated as follows:

• Total jewelry sales - Sales discounts - Sales returns - Sales allowances = $550,000 - $10,000 - $30,000 - $10,000 = $500,000.