Question

Kelly’s Jewelry has the following transactions during the year: total jewelry sales = $710,000; sales discounts = $18,000; sales returns = $46,000; sales allowances = $26,000. In addition, at the end of the year the company estimates the following transactions associated with jewelry sales in the current year will occur next year: sales discounts = $1,800; sales returns = $5,520; sales allowances = $3,470. Compute net sales.

Answer 1

Answer:

The net sales is $609,210

Explanation:

The computation of the net sales is shown below:

=  Total sales - total sales discounts - total sales returns - total  sales allowance

where,

Total sales discounts = Sales discount + estimated sales discount

                                   =  $18,000 + $1,800

                                   = $19,800

Total sales returns = Sales returns + estimated sales returns

                                   =  $46,000 + $5,520

                                   = $51,520

Total sales allowances = Sales allowances + estimated sales allowances

                                   =  $26,000 + $3,470

                                   = $29,470

Now put these values to the above formula

So, the value would equal to

= $710,000 - $19,800 - $51,520 - $29,470

= $609,210