Use This Information to Answer the Following Question The Amount of Net Sales on the Income Statement Would

question 95

Multiple Choice

Use this information to answer the following question. The selected accounts and balances for Pawnee Market appear as follows:
$\begin{array}{lr}\text { Advertising Expense } & 28,000 \\\text { Common Stock } & 200,000 \\\text { Dividends } & 42,000 \\\text { Freight-In } & 14,000 \\\text { Freight-Out Expense } & 20,000 \\\text { Interest Income } & 48,000 \\\text { Merchandise Inventory (Jan. 1) } & 140,000 \\\text { Merchandise Inventory (Dec. 31) } & 112,000 \\\text { Purchases } & 120,000 \\\text { Purchases Returns and Allowances } & 8,000 \\\text { Rent Expense } & 18,000 \\\text { Retained Earnings } & 80,000 \\\text { Sales } & 300,000 \\\text { Sales Returns and Allowances } & 38,000 \\\text { Wages Expense } & 64,000\end{array}$ The amount of net sales on the income statement would be

• A) $338,000.
• B) $288,000.
• C) $262,000.
• D) $274,000.

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Definitions:

Quality

The degree of excellence of a product or service, reflecting its ability to satisfy customer needs and expectations.

Customer Satisfaction

A measure of how products or services supplied by a company meet or surpass customer expectation.

Financial Performance

A measure of how well a company can use assets from its primary mode of business and generate revenues. This term reflects the financial health of a business.

Customer Expectations

The standards or benchmarks that customers anticipate when they purchase a product or service, influencing their satisfaction and loyalty.