Pepper

Business

31 December, 07:37

The following information was drawn from the Year 1 accounting records of Ozark Merchandisers:

a. Inventory that had cost $17,400 was sold for $31,320 under terms 2/20, net/30.

b. Customers returned merchandise to Ozark five days after the purchase.

c. The merchandise had been sold for a price of $784.

d. The merchandise had cost Ozark $560.

e. All customers paid their accounts within the discount period.

f. Selling and administrative expenses amounted to $3,132.

g. Interest expense paid amounted to $240.

h. Land that had cost $6,400 was sold for $8,640 cash.

Required:

1. Determine the amount of net sales.

2. Prepare a multistep income statement.