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The following transactions were selected from the records of Evergreen Company: July 12 Sold merchandise to Wally Butler, who paid the $1,020 purchase with cash. The goods cost Evergreen Company $610.July 16 Sold merchandise to Claudio’s Chair Company at a selling price of $5,020 on terms 3/10, n/30. The goods cost Evergreen Company $3,510.July 19 Sold merchandise to Otto’s Ottomans at a selling price of $3,010 on terms 3/10, n/30. The goods cost Evergreen Company $1,910.July 23 Received cash from Claudio’s Chair Company for the amount due from July 16.July 31 Received cash from Otto’s Ottomans for the amount due from July 19. Required:Compute the amount of Net Sales to be reported for the month ended July 31. (Round your answer to 2 decimal places.)

Question

The following transactions were selected from the records of Evergreen Company: July 12 Sold merchandise to Wally Butler, who paid the 1,020purchasewithcash.ThegoodscostEvergreenCompany1,020 purchase with cash. The goods cost Evergreen Company 610.July 16 Sold merchandise to Claudio’s Chair Company at a selling price of 5,020onterms3/10,n/30.ThegoodscostEvergreenCompany5,020 on terms 3/10, n/30. The goods cost Evergreen Company 3,510.July 19 Sold merchandise to Otto’s Ottomans at a selling price of 3,010onterms3/10,n/30.ThegoodscostEvergreenCompany3,010 on terms 3/10, n/30. The goods cost Evergreen Company 1,910.July 23 Received cash from Claudio’s Chair Company for the amount due from July 16.July 31 Received cash from Otto’s Ottomans for the amount due from July 19. Required:Compute the amount of Net Sales to be reported for the month ended July 31. (Round your answer to 2 decimal places.)

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Solution 1

To calculate the Net Sales for Evergreen Company for the month of July, we need to add up all the sales and subtract any sales discounts.

Here's how to do it:

  1. July 12: Sold merchandise to Wally Butler for $1,020. This was a cash sale, so there's no discount.

  2. July 16: Sold merchandise to Claudio’s Chair Company for 5,020.Thetermswere3/10,n/30,whichmeansthatthecustomergetsa35,020. The terms were 3/10, n/30, which means that the customer gets a 3% discount if they pay within 10 days. Since they paid on July 23, they get the discount. So, the discount is 5,020 * 3% = 150.60.Thenetsalefromthistransactionis150.60. The net sale from this transaction is 5,020 - 150.60=150.60 = 4,869.40.

  3. July 19: Sold merchandise to Otto’s Ottomans for 3,010.Thetermswerethesame,3/10,n/30.TheypaidonJuly31,sotheyalsogetthediscount.Thediscountis3,010. The terms were the same, 3/10, n/30. They paid on July 31, so they also get the discount. The discount is 3,010 * 3% = 90.30.Thenetsalefromthistransactionis90.30. The net sale from this transaction is 3,010 - 90.30=90.30 = 2,919.70.

Adding up all the net sales, we get:

1,020(fromJuly12)+1,020 (from July 12) + 4,869.40 (from July 16) + 2,919.70(fromJuly19)=2,919.70 (from July 19) = 8,809.10

So, the Net Sales for Evergreen Company for the month of July is $8,809.10.

This problem has been solved

Solution 2

To calculate the Net Sales for the month ended July 31, we need to consider the sales made and any discounts given.

Here are the transactions:

  1. July 12: Sold merchandise to Wally Butler for $1,020. This was a cash transaction, so there are no discounts.

  2. July 16: Sold merchandise to Claudio’s Chair Company for 5,020onterms3/10,n/30.ThismeansthatClaudio’sChairCompanygetsa35,020 on terms 3/10, n/30. This means that Claudio’s Chair Company gets a 3% discount if they pay within 10 days. Since they paid on July 23, they are eligible for this discount. So, the discount is 5,020 * 3% = 150.60.Theamountfromthissaleafterdiscountis150.60. The amount from this sale after discount is 5,020 - 150.60=150.60 = 4,869.40.

  3. July 19: Sold merchandise to Otto’s Ottomans for 3,010onterms3/10,n/30.ThismeansthatOtto’sOttomansgetsa33,010 on terms 3/10, n/30. This means that Otto’s Ottomans gets a 3% discount if they pay within 10 days. Since they paid on July 31, they are not eligible for this discount. So, the amount from this sale is 3,010.

Adding up all these amounts, we get the Net Sales for the month:

1,020(fromWallyButler)+1,020 (from Wally Butler) + 4,869.40 (from Claudio’s Chair Company after discount) + 3,010(fromOtto’sOttomans)=3,010 (from Otto’s Ottomans) = 8,899.40.

So, the Net Sales to be reported for the month ended July 31 is $8,899.40.

This problem has been solved

Solution 3

To calculate the Net Sales for the month ended July 31, we need to consider the sales made and any discounts given.

  1. July 12: Sold merchandise to Wally Butler for $1,020. This was a cash sale, so there are no discounts.

  2. July 16: Sold merchandise to Claudio’s Chair Company for 5,020.Thetermswere3/10,n/30,whichmeansthatthecustomergetsa35,020. The terms were 3/10, n/30, which means that the customer gets a 3% discount if they pay within 10 days. Since the payment was received on July 23, within the 10-day period, the discount applies. The discount is 3% of 5,020, which is 150.60.So,thenetsalefromthistransactionis150.60. So, the net sale from this transaction is 5,020 - 150.60=150.60 = 4,869.40.

  3. July 19: Sold merchandise to Otto’s Ottomans for 3,010.Thetermswerethesame,3/10,n/30.ThepaymentwasreceivedonJuly31,withinthe10−dayperiod,sothediscountapplies.Thediscountis33,010. The terms were the same, 3/10, n/30. The payment was received on July 31, within the 10-day period, so the discount applies. The discount is 3% of 3,010, which is 90.30.So,thenetsalefromthistransactionis90.30. So, the net sale from this transaction is 3,010 - 90.30=90.30 = 2,919.70.

Adding up all the net sales, we get 1,020+1,020 + 4,869.40 + 2,919.70=2,919.70 = 8,809.10.

So, the Net Sales to be reported for the month ended July 31 is $8,809.10.

This problem has been solved

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