Question

Reporting Net Sales after Sales Discounts and Sales Returns [LO 6-4]

The following transactions were selected from among those completed by Bear’s Retail Store:
Nov. 20 Sold two items of merchandise to Cheryl Jahn, who paid the $400 (total)
sales price in cash. The goods cost Bear’s $300.
25 Sold 20 items of merchandise to Vasko Athletics at a selling price of
$4,000 (total); terms 3/10, n/30. The goods cost Bear’s $2,500.
28 Sold 10 identical items of merchandise to Nancy’s Gym at a selling price
of $6,000 (total); terms 3/10, n/30. The goods cost Bear’s $4,000.
29 Nancy’s Gym returned one of the items purchased on the 28th. The item
was in perfect condition and credit was given to the customer.
Dec. 6 Nancy’s Gym paid the account balance in full.
30 Vasko Athletics paid in full for the invoice of November 25.
Required:
Compute the net sales revenue to be reported over the two months.

Answer 1

$9,638

Step-by-step explanation:

Computation for the net sales revenue to be reported over the two months.

Step-by-step explanation:

Answer 2

$9,638

Step-by-step explanation:

Computation for the net sales revenue to be reported over the two months.

Net Sales

Date Particulars Amount

Nov. 20 Sales $ 400

Nov. 25 Sales $ 4,000

Nov. 28 Sales $ 6,000

Nov. 29 Sales Returns $ (600)

(1/10 units *6,000)

Dec. 6 Sales Discount $ (162) [(6,000-600)*3/100]

Net sales $ 9,638

Therefore the net sales revenue to be reported over the two months will be $9,638