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10 August, 20:05

Ryerson Co. provides goods and services to customers during the year totaling $100,000. Also during the year, customers are granted discounts, returns, and allowance of $20,000. At the end of the year, Ryerson estimates that an additional $5,000 in discounts, returns, and allowances will occur next year as a result of sales transactions this year. What is the amount of net revenues Ryerson will report in its current-year income statement? a. $85,000. b. $75,000. c. $100,000. d. $80,000.

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  1. 10 August, 23:46
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    B. $ 75000

    Explanation:

    Given that

    Gross sales and services = 100000

    Discounts = 20000

    Estimated additional discounts from this year sales = 5000

    Recall that

    Net revenue = Gross Revenue/Sales - (Sales returns, discounts and allowances)

    Therefore,

    Net revenue = 100000 - 20000 - 5000

    = 75000

    Thus,

    Net revenue for current year = $75, 000.
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