The Tanner Company has provided the following information after year-end adjustments:

Allowance for doubtful accounts increased $26,600.
Accounts receivable increased $485,000 during the year.
Accounts written off as uncollectible totaled $29,500.
Sales totaled $2,690,000.
Sales discounts were $119,000.

What was the amount of Tanner’s net sales?

Multiple Choice

$2,056,500.
$2,571,000.
$2,541,500.
$2,600,500.

Solutions

Expert Solution

Given information:

Allowance for doubtful accounts increased $26,600.
Accounts receivable increased $485,000 during the year.
Accounts written off as uncollectible totaled $29,500.
Sales totaled $2,690,000.
Sales discounts were $119,000.

Requirements:

Tanner’s net sales

Formula to calculate:

Tanner’s net sales = Sales totaled - Sales discounts

= $2,690,000 - $119,000

= $2,571,000

$2,571,000 is the correct answer.

DEEPIKA GOYAL answered 1 year ago

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