Riverstone Electronics began 2023 with a credit balance of $25,000 in the allowance for sales returns account. Sales and cash collections from customers during the year were $700,000 and $675,000, respectively. Riverstone estimates that 5% of all sales will be returned. In 2023, customers returned merchandise for a credit of $35,000 to their accounts. Riverstone Electronics' 2023 income statement would report net sales of: a. $665,000 b. $660,000 c. $640,000 d. $675,000

Riverstone Electronics began 2023 with a credit balance of $25,000 in the allowance for sales returns account. Sales and cash collections from customers during the year were $700,000 and $675,000, respectively. Riverstone estimates that 5% of all sales will be returned. In 2023, customers returned merchandise for a credit of $35,000 to their accounts. Riverstone Electronics' 2023 income statement would report net sales of: a. $665,000 b. $660,000 c. $640,000 d. $675,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 10EB: Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts...

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