Question

Prentice Company, Inc. had cash sales of $95,325, credit sales of $84,075, sales returns and allowances of $2,125, and sales discounts of $3,900. Prentice’s net sales for this period equal:

$95,325.

$173,375.

$175,500

$177,275.

$179,400.

Answer 1

$173,375.

Step-by-step explanation:

Cash sales $95,325

Credit sales $84,075

Sales return and allowance $2,125

Sales discount $3,900

Therefore,

Net sales = (Cash sales + credit sales) - sales return and allowance + sales discount.

Net sales = ($95,325 + $84,075) - $2,125 - $3,900

= $173,374.

Net sales for the period =$173,375