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:

Commercial Products

Goods or services that are produced for sale to consumers in the marketplace.

Governmental Services

Various services provided by the government to its citizens, such as education, healthcare, and public safety.

Articles of Confederation

The first governing document of the United States, created before the Constitution, which provided a loose federation of the states with limited central government power.

Ratified

The process by which a proposed treaty or agreement is officially approved and adopted by the necessary parties or institutions.