36. Given the following data: Sales of P974,250; Sales returns and allowances of P12,750; Sales discount of P8,050; Purchases of P528,700; Purchase returns and allowances of P7,450; Purchase discount of P3,550; Freight-in of P7,400; Selling expense of P120,125; and General and Administrative expense of P95,300. Compute for the Net sales.*a. P535,100b. P591,600c. P953,430d.P546,100
Question
36. Given the following data: Sales of P974,250; Sales returns and allowances of P12,750; Sales discount of P8,050; Purchases of P528,700; Purchase returns and allowances of P7,450; Purchase discount of P3,550; Freight-in of P7,400; Selling expense of P120,125; and General and Administrative expense of P95,300. Compute for the Net sales.*a. P535,100b. P591,600c. P953,430d.P546,100
Solution
To compute for the Net Sales, you need to subtract the Sales Returns and Allowances and the Sales Discount from the Total Sales.
Here's the step-by-step computation:
- Subtract Sales Returns and Allowances from Total Sales: P974,250 - P12,750 = P961,500
- Subtract Sales Discount from the result in step 1: P961,500 - P8,050 = P953,450
So, the Net Sales is P953,450. The closest answer in the choices is c. P953,430. There seems to be a slight discrepancy of P20.
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