Question

The Riverdale Company reported the following transactions duringthe months of May and June 2013. Based on the information belowcalculate the net sales for the two months ending in June 2013.Remember to show sales at the gross amount and each deduction togross sales separately (sales returns and allowances, salesdiscounts and credit card discounts).

May 25th     Sold 15 items of merchandise to Pandora,Inc. at an invoice price of $10,500 (total), terms of 2/10, net30

May 21        Sold 5 items ofmerchandise to John Jones who charged the $500 sales price on hisAmerican Express card. American Express charges Riverdale a 3%credit card fee

May 30th     Sold 20 identical items to Prevue, Inc. atan invoice price of $7,500 (total), terms 2/10, net 30

June 1st         Prevue returned 2 of the itemspurchased on May 30th as they were deemed defective anda credit was granted to the customer

June 4th       Pandora paid the entireaccount balance in full for the purchase they made on May25th

June 15th     Prevue, Inc. paid the amount due for themerchandise they purchased on June 1st