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Loak Corporation provides the following data for the year 2020: Cash sales 500,000; Collection from customers 3,950,000; Increase in accounts receivable 250,000; Decrease in notes receivable 50,000; accounts receivable written off 100,000; sales discounts 200,000; and sales return and allowances 70,000 of which 20,000 refunded to customers. What was the amount of gross sales for 2020? a. 5,020,000 c. 4,500,000 b. 4,900,000 d. 5,000,000

Loak Corporation provides the following data for the year 2020: Cash sales 500,000; Collection from customers 3,950,000; Increase in accounts receivable 250,000; Decrease in notes receivable 50,000; accounts receivable written off 100,000; sales discounts 200,000; and sales return and allowances 70,000 of which 20,000 refunded to customers. What was the amount of gross sales for 2020? a. 5,020,000 c. 4,500,000 b. 4,900,000 d. 5,000,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 3P
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Loak Corporation provides the following data for the year 2020:

Cash sales 500,000; Collection from customers 3,950,000; Increase in accounts receivable 250,000; Decrease in notes receivable 50,000; accounts receivable written off 100,000; sales discounts 200,000; and sales return and allowances 70,000 of which 20,000 refunded to customers.


What was the amount of gross sales for 2020?
a. 5,020,000 c. 4,500,000
b. 4,900,000 d. 5,000,000

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