Question

In: Accounting

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

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

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 2 years ago
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