Question

Gross billings for merchandise sold by Cullumber Company to its customers last year amounted to $12720000; sales returns and allowances were $360000, sales discounts were $175300, and freight-out was $139400. Net sales last year for Cullumber Company were:____.a. $12,720,000.b. $12,275,000.c. $12,175,000.d. None of the above.

Answer 1

Answer:

12,184,700

Explanation:

The gross billing for merchandise old on cullumber company last year was 12,720,000

The sales return and allowance is 360,000

The sales discount is 175,300

Therefore the net sales for last year can be calculated as follows

= 12,720,000-360,000-175,300

= 12,184,700

Hence the net sales last year for cullumber company is $12,184,700