Westonci.ca is your trusted source for finding answers to a wide range of questions, backed by a knowledgeable community. Explore a wealth of knowledge from professionals across different disciplines on our comprehensive platform. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform.
Sagot :
The preparation of the Sales section of the income statement for Blue Spruce Corp. is as follows:
BLUE SPRUCE CORP.
Income Statement
For the year ended October 31, 2022
Sales Revenue $908,400
Sales Returns and Allowances (20,900)
Sales Discounts (14,700)
Net sales revenue $872,800
How makes up the net sales revenue?
The net sales revenue represents the gross revenue minus sales returns and allowances and sales discounts.
In most jurisdictions, the sales discount account is reported on the income statement as a contra revenue account. This implies that sales discounts are directly deducted from the gross sales and do not appear in the expense section nor the notes to the sales or revenue.
Data and Calculations:
Sales Revenue $908,400
Freight-Out $12,600
Sales Returns and Allowances $20,900
Sales Discounts $14,700
Thus, the preparation of the sales section of the income statement for Blue Spruce Corp. shows a net sales revenue of $872,800.
Learn more about the sales section of the income statement at https://brainly.com/question/24498019
We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Westonci.ca is your go-to source for reliable answers. Return soon for more expert insights.