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:

Allylic Carbons

Atoms of carbon that are positioned next to a carbon-carbon double bond in a molecule, often exhibiting unique reactivity due to their position.

Cholesterol

A waxy substance found in the lipids (fats) in the blood, essential for the creation of vitamin D, steroid hormones, and bile acids, but high levels can lead to health risks.

Highest Occupied

Refers to the Highest Occupied Molecular Orbital (HOMO), which is the top-most energy molecular orbital that is occupied by electrons in a molecule under the ground state.

π MO

Pi molecular orbitals are formed by the overlap of p orbitals that are oriented parallel to each other, playing a key role in the bonding of molecules with conjugated systems.