False Value Hardware began 2013 with a credit balance of $32,200 in the allowance for sales returns account. Sales and cash collections from customers during the year were $640,000 and $600,000, respectively. False Value estimates that 6% of all sales will be returned. During 2013, customers returned merchandise for a credit of $26,000 to their accounts. False Value's 2013 income statement would report net sales of: a. $633,800 b. $614,000 c. $601,600 d. $607,800
False Value Hardware began 2013 with a credit balance of $32,200 in the allowance for sales returns account. Sales and cash collections from customers during the year were $640,000 and $600,000, respectively. False Value estimates that 6% of all sales will be returned. During 2013, customers returned merchandise for a credit of $26,000 to their accounts. False Value's 2013 income statement would report net sales of: a. $633,800 b. $614,000 c. $601,600 d. $607,800
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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Transcribed Image Text:False Value Hardware began 2013 with a credit
balance of $32,200 in the allowance for sales returns
account. Sales and cash collections from customers
during the year were $640,000 and $600,000,
respectively. False Value estimates that 6% of all
sales will be returned. During 2013, customers
returned merchandise for a credit of $26,000 to their
accounts. False Value's 2013 income statement
would report net sales of:
a. $633,800
b. $614,000
c. $601,600
d. $607,800
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