On November 1, 2017, Rodgers Enterprises sold merchandise with a cost of $7,000 for $25,000, FOB destination, with payment terms of 2/10, n/40. The company paid transportation costs of $100. Customer returns on this sale were $5,000 (with a cost of $2,500). The merchandise was returned on November 6. The company received the payment for the balance amount on November 10, 2017. Calculate the net sales revenue. Group of answer choices $19,600 $20,000 $4,500 $20,100

Question

Business

James Willis

18 May, 15:25

On November 1, 2017, Rodgers Enterprises sold merchandise with a cost of $7,000 for $25,000, FOB destination, with payment terms of 2/10, n/40. The company paid transportation costs of $100. Customer returns on this sale were $5,000 (with a cost of $2,500). The merchandise was returned on November 6. The company received the payment for the balance amount on November 10, 2017. Calculate the net sales revenue. Group of answer choices $19,600 $20,000 $4,500 $20,100

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Callie White · Answer 1

The net sales revenue is $19,600

Explanation:

In order to calculate the net sales revenue we would have to make the following calculation:

Net Sales Revenue=Sales Revenue-Sales Returns and Allowances-Sales Discounts

Sales Revenue=$25,000

Sales Returns and Allowances = $5,000

Sales Discounts [ ($25,000-$5,000) * 2%] = $400

Net Sales Revenue=$25,000-$5,000 - $400

Net Sales Revenue=$19,600

The net sales revenue is $19,600