Rusty Hardware Makes Only Cash Sales

question 170

Multiple Choice

Rusty Hardware makes only cash sales. It began 2018 with a credit balance of $32,000 in the refund liability account. Sales during 2018 were $600,000. Rusty estimates that 6% of all sales will be returned. During 2018, customers returned merchandise for credit of $28,000 to their accounts.
-Rusty's 2018 income statement would report net sales of:

• A) $600,000.
• B) $564,000.
• C) $568,000.
• D) $604,000.

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Definitions:

Money

A medium of exchange for goods and services, functioning as a measure of value and a unit of account.

Social Loneliness

The feeling of being alone or isolated from a social perspective, typically arising from a lack of meaningful social connections.

Emotional Loneliness

A feeling of isolation or detachment from others, despite possibly being surrounded by people.

Illness Transmission

The process by which diseases spread from one individual to another, through direct or indirect contact, or environmental exposure.