Reporting net sales with credit sales, sales discounts, and sales returns
The following transactions were selected from among those completed by Bear's Retail Store in 2010:
Nov. 20
1. Sold two items of merchandise to Cheryl Jahn, who paid the $400 sales price in cash. The goods cost Bear’s $300.
2. Sold 20 items of merchandise to Vasko Athletics at a selling price of $4000(total); terms 3/10, n/30. The goods cost Bear’s $2,500.
3. Sold 10 identical items of merchandise to Nancy’s Gym at a selling price of $6000 (total); terms 3/10, n/30. The goods cost Bear’s $4000.
4. Nancy’s Gym returned one of the items purchased on the 28th. The item was in perfect condition, and credit was given to the customer.
Dec. 6 Nancy’s Gym paid the account balance in full.
5. Vasko Athletics paid in full for the invoice of November 25, 2010.
Required:
Assuming that Sales Returns and Sales Discounts are reported as contra-revenues, compute Net Sales for the two months ended December 31, 2010.