Explanation Sales revenue : The amount of price of merchandise sold during a certain period is referred to as sales revenue. Net sales is the sales revenue, net of sales returns, sales allowances, and sales discounts. Formula to compute net sales: Net sales = Sales revenue–Sales returns and allowances–Sales discounts Sales returns and allowances : Sometimes, customers either return goods due to manufacturing defects, or accept to keep the defective goods for a reduction in sale price. That amount of goods returned, or reduced amount in sale price, is referred to as sales returns and allowances. These are recorded as contra-revenue accounts. Sales discounts : The merchandisers offer a reduction in sales price on initial sales, to accelerate the sale on account payments, by their customers within the sale terms promptly. Such a reduction in sales price is referred to as sales discount. This is recorded as contra-revenue account. Determine the net sales for BR Store for the two months ended December 31 . Details Amount ($) Sales revenue from CJ $400 Sales revenue from VAthletics 4,000 Sales revenue from N Gym 6,000 Total sales revenue 10,400

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ISBN: 9780078025914

Author: Fred Phillips Associate Professor, Robert Libby, Patricia Libby

Publisher: McGraw-Hill Education

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Chapter 6, Problem 6.16E

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The net sales for BR Store for the two months ended December 31

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Chapter 6, Problem 6.15E

Chapter 6, Problem 6.17E

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The net sales for BR Store for the two months ended December 31

Solution Summary: The author calculates the net sales for BR Store for the two months ended December 31. Sales revenue is the amount of merchandise sold during a certain period.

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