Respuesta :
Answer:
The $20,354.50 will be reported on the income statement as net sales
Explanation:
The computation of the net sales is shown below:
= Total sales - discount on credit card sales - sales discount - sales return
where,
total sales = Credit card sales + sales on account
= $9,400 + $12,000
= $21,400
Discount on credit card sales = Credit card sales × discount
= $9,400 × 3%
= $282
Sales discount = (Sales on account - sales return × 0.5(Half payment) × 2%)
= ($12,000 - $650) × 0.5 × 2%
= $113.50
And, the sales return = $650
Now put these values to the above formula,
So the values equal to
= $21,400 - $282 - $113.50 - $650
= $20,354.50
If all returns were made before payment. One-half of the remaining sales on account were paid within the discount period. The company treats all discounts and returns as contra-revenues. The amount that will be reported on the income statement as net sales is $20,354.5
First step is to calculate the Total sales
Total sales = $9,400 + $12,000
Total sales = $21,400
Second step is to calculate the discount
Discount= [(($12,000 - $650)÷2×2%) + ($9,400×3%]
Discount=$113.5+$282
Discount=$395.5
Now let determine the amount that will be reported on the income statement as net sales
Net sales= $21,400 - $650-$395.5
Net sales= $20,354.50
Inconclusion if all returns were made before payment. One-half of the remaining sales on account were paid within the discount period. The company treats all discounts and returns as contra-revenues. The amount that will be reported on the income statement as net sales is $20,354.5
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