Question

Gross billings for merchandise sold by Cullumber Company to its customers last year amounted to $12710000;...

Gross billings for merchandise sold by Cullumber Company to its customers last year amounted to $12710000; sales returns and allowances were $360000, sales discounts were $174100, and freight-out was $140500. Net sales last year for Cullumber Company were

$12350000.

$12175900.

$12035400.

$12710000.

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Answer #1
Correct option is: b. $12175900
Workings:
Sales = $       1,27,10,000
Less: Sales return and allowances = $            -3,60,000
Less: Sales discount = $            -1,74,100
Net Sales = $       1,21,75,900

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