Question

Blossom Company provides the following information for the month ended October 31, 2019; sales on credit $296,100, cash sales $102,300, sales discounts $5,300, and sales returns and allowances $13,100.

Prepare the sales revenues section of the income statement based on this information.

Answer 1

Blossom Company

Amount in $ Amount in $

Sales 398,400

less;

Sales discount 5,300

Sales returns 13,100

(18,400)

Net sales 380,000

Step-by-step explanation:

The sales section shows the net sales which is given as the total sales less all sales discounts and sales returns. Total sales is the sum of cash and credit sales.

Total sales = $102,300 + $296,100

= $398,400