Question

Newark Company has provided the following information: Cash sales, $540,000 Credit sales, $1,440,000 Selling and administrative...

Newark Company has provided the following information:

  • Cash sales, $540,000
  • Credit sales, $1,440,000
  • Selling and administrative expenses, $420,000
  • Sales returns and allowances, $99,000
  • Gross profit, $1,450,000
  • Increase in accounts receivable, $64,000
  • Bad debt expense, $42,000
  • Sales discounts, $52,000
  • Net income, $1,030,000

How much are Newark's net sales?

Multiple Choice

  • $1,829,000.

  • $1,787,000.

  • $1,916,000.

  • $1,980,000.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Given,

  • Cash sales= $540,000
  • Credit sales= $1,440,000
  • Sales discounts= $52,000
  • Sales returns and allowances=$99,000

The Net Sales is Computed by adding Gross Sales i.e Cash Sales plus Credit Sales reduced by Sales Discount, Rebates & Allowances.

Gross Sales = Cash sales +  Credit sales = $540,000 +   $1,440,000 = $19,80,000

Therefore, Net Sales = Gross Sales - Sales discounts - Sales returns and allowances

= $19,80,000 - $52,000 -  $99,000

= $18,29,000

Answer: The Net Sales is : $18,29,000

[Note: Selling and administrative expenses,Increase in accounts receivable, Bad debt expense has no relevance in determining Net Sales]

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash sales,...
Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash sales, $156,000 Credit sales, $456,000 Selling and administrative expenses, $116,000 Sales returns and allowances, $36,000 Gross profit, $496,000 Accounts receivable, $165,000 Sales discounts, $20,000 Allowance for doubtful accounts credit balance, $1,800 Flyer estimates bad debt expense assuming that 1% of credit sales have historically been uncollectible. What is the balance in the allowance for doubtful accounts after bad debt expense is recorded? Multiple Choice $4,320....
Apple Company has provided the following information prior to any year-end bad debt adjustment: • Cash...
Apple Company has provided the following information prior to any year-end bad debt adjustment: • Cash sales, $143,000 • Cost of sales, $188,000 • Sales returns and allowances, $34,000 • Sales discounts, $20,000 • Gross profit, $218,000 • Selling and administrative expenses, $43,000 • Net income, $32,000 • Increase in accounts receivable, $70,000 Apple estimates bad debt expense assuming that 1% of credit sales have historically been uncollectible. How much is Bishop’s bad debt expense? (a) $4,170 (b) $2,170 (c)...
The Tanner Company provided the following information for 2019, after year-end adjustments. Allowance for doubtful accounts...
The Tanner Company provided the following information for 2019, after year-end adjustments. Allowance for doubtful accounts was $11,000 at the beginning of the year, and $30,000 at the end of the year. Accounts receivable (gross) were $80,000 at the beginning of the year, and $420,000 at the end of the year. Accounts written off as uncollectible during the year were $10,000. Sales totaled $2,700,000. Half of the sales were in cash; half were on credit. Like all temporary income statement...
Given the following information for the year ended 12/31/X3: Sales Revenues ($210,000); Selling and Administrative Expense...
Given the following information for the year ended 12/31/X3: Sales Revenues ($210,000); Selling and Administrative Expense $42,000; Sales Discounts $6,000; Sales Returns and Allowances $11,000; Cost of Goods Sold $125,000; Interest Expense $4,000. Determine the 20X3 gross margin The answer is 68000 but I want to know how that value was derived, thank you
Omega Company has provided the following information prior to any year-end bad debt adjustment: ·       Cash sales...
Omega Company has provided the following information prior to any year-end bad debt adjustment: ·       Cash sales are $150,000 ·       Credit sales are $450,000 ·       Accounts receivable (gross) are $110,000 ·       Allowance for doubtful accounts balance is $1,200 Omega prepares an aging of accounts receivable and the result shows that 5% of gross accounts receivable is estimated to be uncollectible. What is the balance in the allowance for doubtful accounts after the bad debt expense is recorded?            A) $5,500            B) $6,700            C) $4,240            D)...
Pina Colada Limited reports the following information: sales $1,114,000; sales returns and allowances $23,000; sales discounts...
Pina Colada Limited reports the following information: sales $1,114,000; sales returns and allowances $23,000; sales discounts $18,800; cost of goods sold $650,600; administrative expenses $158,600; selling expenses $109,300; other revenues $25,100; other expenses $35,600; and income tax expense $28,300. Assume Pina Colada uses a multiple-step income statement. calculate net sales gross profit income from operations income before tax net income
Tungsten Company, Inc., sells heavy construction equipment. There are 11,500 shares of capital stock outstanding. The...
Tungsten Company, Inc., sells heavy construction equipment. There are 11,500 shares of capital stock outstanding. The annual fiscal period ends on December 31. The following condensed trial balance was taken from the general ledger on December 31, Current Year: Account Titles Debit Credit Cash $ 34,800 Accounts receivable (net) 15,100 Inventory, ending 53,400 Operational assets 41,000 Accumulated depreciation $ 18,100 Liabilities 24,300 Capital stock 73,900 Retained earnings, January 1, Current Year 16,480 Sales revenue 147,800 Sales returns and allowances 7,300...
AT&U Company has the following data for the year ended December 31, Year 1: Sales (credit)...
AT&U Company has the following data for the year ended December 31, Year 1: Sales (credit) $2,500,000 Sales returns and allowances 50,000 Accounts receivable (December 31, Year 1) 640,000 Allowance for doubtful accounts      (before adjustment at December 31, Year 1) 20,000 Estimated amount of uncollected accounts based on aging analysis (December 31, Year 1) 45,000 14. Refer to AT&U Company. If the company uses the aging of accounts receivable approach to estimate its bad debts, what amount will be...
On Dec 31, 2016, Riyadh Company had accounts: Credit sales                                 &nb
On Dec 31, 2016, Riyadh Company had accounts: Credit sales                                                                             $2,500,000 Ending accounts receivable                                                         800,000 Sales discousnts                                                                          120,000 Sales returns and allowances                                                       280,000 Beginning accounts receivable                                                    750,000 Allowance for doubtful accounts (credit)                                     12,000      The aging schedule (aging method) for the company’s accounts receivable is shown in the following table: # of Days Outstanding Amounts Estimated % Uncollectible 0-30 $     100,000 2% 31-60 300,000 4% 61-90 300,000 6% Over 90                     100,000...
The following is a partial Adjusted Trial Balance for Alpha Company for the month: Alpha Company...
The following is a partial Adjusted Trial Balance for Alpha Company for the month: Alpha Company Adjusted Trial Balance (partial) January 31, 2016 Accounts Debit Credit Inventory $2,750 Sales $10,000 Sales Discounts 200 Sales Returns & Allowances 1,200 Purchases 4,000 Purchases Discounts 150 Purchase Returns & Allowances 450 Freight In 50 Advertising Expense 150 Depreciation Expense (100% Admin & General) 130 Freight Out 70 Income Tax Expense 500 Salaries Expense 500 Utilities Expense 100 Additionally, Inventory for December 31, 2015...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT