Question

The adjusted trial balance of Cheyenne Company shows the following data pertaining to sales at the end of its fiscal year, October 31, 2017:

Sales Revenue $728,400, Delivery Expense $12,780, Sales Returns and Allowances $25,320, and Sales Discounts $12,380.

Prepare the revenues section of the income statement.

Answer 1

Cheyenne Company

Amount in $ Amount in $

Sales revenue 728,400

Less;

Sales Returns and Allowances 25,320

Sales Discounts 12,380

(37,700)

Net sales 690,700

Step-by-step explanation:

The revenue section of the income statement shows the computation of the net sales which is the result of the total sales less sales returns, discounts and allowances.