Brazen Shoe Company records Sales Returns and Allowances, Sales Discounts, and Credit Card Discounts as contra-revenues.

July 12 Sold merchandise to customer at factory store who charged the $600 purchase on her American Express card. American Express charges a 3 percent credit card fee. Cost of good sold was $475.

July 15 Sold merchandise to Customer T at an invoice price of $4,900; terms 2/10, n/30. Cost of goods sold was $2,450

July 20 Collected cash due from Customer T.

July 21 Before paying for the order, a customer returned shoes with an invoice price of $1,400, and cost of goods sold was $840.

Prepare the transactionof net sales and cost of good sold.

Question

Markus

Business

24 March, 20:55

Brazen Shoe Company records Sales Returns and Allowances, Sales Discounts, and Credit Card Discounts as contra-revenues.

July 12 Sold merchandise to customer at factory store who charged the $600 purchase on her American Express card. American Express charges a 3 percent credit card fee. Cost of good sold was $475.

July 15 Sold merchandise to Customer T at an invoice price of $4,900; terms 2/10, n/30. Cost of goods sold was $2,450

July 20 Collected cash due from Customer T.

July 21 Before paying for the order, a customer returned shoes with an invoice price of $1,400, and cost of goods sold was $840.

Prepare the transactionof net sales and cost of good sold.

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Answers (1)

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Karlee Cooley · Answer 1

Brazen Shoe Company

Net Sales

JUly 12 Sales $600

July 15 Sales 4,900

July 21 Sales return (1,400)

4,100

Cost of Goods sold

July 12 Inventory $475

July 15 Inventory 2,450

July 21 Invemtory (840)

2,085