Sub. General Account False Value Hardware began 2013 with a creditbalance of $32,200 in the allowance for sales returnsaccount. Sales and cash collections from customersduring the year were $640,000 and $600,000,respectively. False Value estimates that 6% of allsales will be returned. During 2013, customersreturned merchandise for a credit of $26,000 to theiraccounts. False Value's 2013 income statementwould report net sales of:a. $633,800b. $614,000c. $601,600d. $607,800

Step 1: Define Sales ReturnOne of the deductions from the sales revenue is the sales return because…

Answered: False Value Hardware began 2013 with a…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 38P

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What is net sales?

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