## Sales Transactions and Net Sales Calculation for Markle's Inc.**Transaction Data:**Markle's Inc. had the following transactions during the year:- Total sales: $610,000- Sales discounts: $13,000- Sales returns: $36,000- Sales allowances: $16,000At the end of the year, the company estimates the following transactions associated with sales in the current year will occur next year:- Sales discounts: $1,300- Sales returns: $4,320- Sales allowances: $2,130**Compute Net Sales:**The image contains a table for calculating net sales with labeled sections as follows:1. **Total Sales**: An entry for the total sales amount.2. **Deductions**: - Sales discounts - Sales returns - Sales allowances3. **Net Sales**: The final value of net sales calculated by subtracting all deductions from the total sales.**Explanation:**Net sales are calculated by subtracting the total sales discounts, sales returns, and sales allowances from the total sales. The estimated future transactions are considered in the company's adjustments and financial planning.**Calculation:**1. **Total Deductions for Current Year**: - Total Deductions = Sales Discounts + Sales Returns + Sales Allowances - Total Deductions = $13,000 (current year discounts) + $36,000 (current year returns) + $16,000 (current year allowances)2. **Net Sales**: - Net Sales = Total Sales - Total Deductions - Calculate using the total and the current year deductions without considering next year's estimates in the immediate calculation.

Sales revenue: It is the revenue earned by a business on selling the goods or providing services to…

Markle's Inc. had the following transactions during the year: total sales = $610,000; sales discounts = $13,000; sales returns = $36,00; sales allowances = $16,000. In addition, at the end of the year the company estimates the following transactions associated with sales in the current year will occur next year: sales discounts = $1,300; sales returns = $4,320; sales allowances = $2,130. Compute net sales. Total sales Net sales

Markle's Inc. had the following transactions during the year: total sales = $610,000; sales discounts = $13,000; sales returns = $36,00; sales allowances = $16,000. In addition, at the end of the year the company estimates the following transactions associated with sales in the current year will occur next year: sales discounts = $1,300; sales returns = $4,320; sales allowances = $2,130. Compute net sales. Total sales Net sales

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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