A Company Reports the Following Amounts at the End of the Year

question 160

Short Answer

A company reports the following amounts at the end of the year: Total sales = $400,000;cash = $35,000;sales discounts = $10,000;accounts receivable = $20,000;sales returns = $15,000;operating expenses = $70,000;sales allowances = $25,000.Compute net revenues.

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Definitions:

Depository Bank

A financial institution where deposits are made, held, and managed; also facilitates financial transactions for clients.

Settlement

An agreement reached between parties in a dispute, where usually one party agrees to provide compensation to the other, ending the dispute outside of court.

Creditor

An individual, company, or institution to whom money is owed by another party, the debtor.