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Heller Company offers an unconditional return policy to its customers. During the current period, the company records total sales of $850,000, with a cost of merchandise to Heller of $340,000. Based on past experience, Heller Company expects 4% of sales to be returned. How much in net sales will Heller Company recognize for the current period?
A. $510,000
B. $816,000
C. $489,600
D. $360,400
E. $850,000

Answer :

Answer:

B. $816,000

Explanation:

The computation of the net sales is shown below:

= Total sales - sales returned amount

where,

Total sales is $850,000

And, the sales returned amount would be

= Total sales amount × sales returned percentage

= $850,000 × 4%

= $34,000

Now put these values to the above formula

So, the value would be equal to

= $850,000 - $34,000

= $816,000

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