Use this information to answer the following question. In addition,beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.
Net sales for the period were
A)$305,000.
B)$275,000.
C)$295,000.
D)$215,000.

Question

Use this information to answer the following question.  In addition,beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.
Net sales for the period were
A)$305,000. 
B)$275,000. 
C)$295,000. 
D)$215,000.

Quizplus · Accepted Answer

Using the formula for calculating net sales, we have:
Net Sales = Total Sales - Sales Returns and Allowances
Total Sales = Cost of Goods Sold + Ending Merchandise Inventory - Beginning Merchandise Inventory
Cost of Goods Sold = Total Sales - Ending Merchandise Inventory + Beginning Merchandise Inventory
Plugging in the given values, we get:
Cost of Goods Sold = $295,000 - $14,000 + $22,000 = $303,000
Net Sales = $303,000 - $2,000 = $301,000
Therefore, the correct answer is C, $295,000.

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