During 2024, its first year of operations, Hollis Industries recorded sales of $10,600,000 and experienced returns of $720,000. Cost of goods sold totaled $6,360,000 (60% of sales). The company estimates that 8% of all sales will be returned. How much net revenue will Hollis Industries report at the end of its first year of operations?
During 2024, its first year of operations, Hollis Industries recorded sales of $10,600,000 and experienced returns of $720,000. Cost of goods sold totaled $6,360,000 (60% of sales). The company estimates that 8% of all sales will be returned. How much net revenue will Hollis Industries report at the end of its first year of operations?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:During 2024, its first year of operations, Hollis
Industries recorded sales of $10,600,000 and
experienced returns of $720,000. Cost of
goods sold totaled $6,360,000 (60% of sales).
The company estimates that 8% of all sales
will be returned. How much net revenue will
Hollis Industries report at the end of its first
year of operations?
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