The adjusted trial balance of Carla Vista Company shows the following data pertaining to sales at...

Question:

The adjusted trial balance of Carla Vista Company shows the following data pertaining to sales at the end of its fiscal year October 31, 2020:

Sales Revenue: $841,900

Freight-Out: $16,400

Sales Returns and Allowances: $33,100

Sales Discounts: $16,900.

Prepare the sales section of the income statement.

Sales Revenue:

The revenue that is generated by the company by selling its goods to its customers into the market within a certain period, then it is called sales revenue. It is the term that determines the profit. The profit and the sales revenue is directly proportioned to each other.

Answer and Explanation:

The sales section of the income statement
Particular Amount $
Sales revenue 841,900
Less: Sales return and allowances 33,100
Less: Sales discount 16,900
Net Sales 791,900
Less: Operating expense:
Freight out 16,400
Net income 775,500


Learn more about this topic:

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How to Calculate Sales Revenue: Definition & Formula

from Financial Accounting: Help and Review

Chapter 5 / Lesson 27
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