Using the Following Information,calculate Credit Sales for the Year Ended

question 43

Multiple Choice

Using the following information,calculate credit sales for the year ended 30 June 2016.

• A) $1 332 000
• B) $1 350 000
• C) $1 368 000
• D) None of the answers provided

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Definitions:

Inventory

Assets held for sale in the ordinary course of business, in the process of production for such sale, or in the form of materials to be consumed in the production process.

Purchases Discount

A reduction in the cost of goods or services, granted by the seller to the buyer, when the buyer pays within a specified time frame.

Sales Discount

A reduction in the price of goods or services offered to customers, typically to prompt quick payment or bulk purchases.

Trade Discounts

Reductions in the listed price of goods and services, offered by sellers to buyers in the business-to-business market.