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.

Question

Business

Abril Foster

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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Answers (1)

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Jaelyn Horne · Answer 1

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.