Chapter 6, Problem 6.14E

Reporting Net Sales with Credit Sales and Sales Discounts

The following transactions were selected from the records of Evergreen Company:

July 12	Sold merchandise to Wally Butter, who paid the $1,000 purchase with cash. The goods cost Evergreen Company $600.
15	Sold merchandise to Claudio’s Chair Company at a selling price of $5,000 on terms 3/10, n/30. The goods cost Evergreen Company $3,500.
20	Sold merchandise to Otto’s Ottomans at a selling price of $3,000 on terms 3/10, n/30. The goods cost Evergreen Company $1,900.
23	Collected payment from Claudio's Chair Company from the July 15 sale.
Aug. 25	Collected payment from Otto’s Ottomans from the July 20 sale.

Required:

Assuming that Sales Discounts are reported as contra-revenue, compute Net Sales for the two months ended August 31.