Question

If Johnson, Inc. sold $800,000 worth of merchandise, had $100,000 returned, and then the balance paid during the 1% discount period, how much was Johnson's net sales? a. $692,000 b. $693,000 c. $700,000 d. $800,000

Answer 1

correct answer is a. $692,000

Step-by-step explanation:

given data

sold worth of merchandise = $800,000

returned = $100,000

discount period = 1%

solution

we get here net sales that is express as

Net sales = Gross sales - Sales return ...................................1

Net sales = $800,000 - $100,000 = $700,000

and here we considered for calculating Net sale is 1 %

so Net sales = $700,000 - 0.01 ( 700,000 )

Net sales = $693,000

so correct answer is a. $692,000