1.) What is the Net Sales amount? Jan. 6 Sold goods for $1,500 to S. Green...

1.) What is the Net Sales amount?

Jan.	6	Sold goods for $1,500 to S. Green and billed that amount subject to terms 2/10, n/30.
	6	Sold goods to M. Munoz for $850 and billed that amount subject to terms 2/10, n/30.
	14	Collected cash due from S. Green.
Feb.	2	Collected cash due from M. Munoz.
	28	Sold goods for $400 to R. Reynolds and billed that amount subject to terms 2/10, n/45.

Required:

Assuming that Sales Discounts is treated as a contra-revenue, compute net sales for the two months ended February 28.

Solutions

Expert Solution

1. Journal Entries -

2. Net Sales Revenue -

Sales Discount -

Sales discount is the amount which is given to the debtors when they pay with in the resonable period of time. When they paid the full amount with in period given they are given sales discounts.

Sales discount is the reduction in the amount of Sales revenue.

Net Sales = Sales Revenue - Sales Discount.

ekkarill92 answered 1 year ago

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