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MMLU / A shoe retailer allows customers to return shoes within 90 days of purchase. The…

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

A shoe retailer allows customers to return shoes within 90 days of purchase. The company estimates that 5% of sales will be returned within the 90-day period. During the month, the company has sales of 200,000andreturnsofsalesmadeinpriormonthsof200,000 and returns of sales made in prior months of 5,000. What amount should the company record as net sales revenue for new sales made during the month?
Plain-text mathematical notation (without MathML)
A shoe retailer allows customers to return shoes within 90 days of purchase. The company estimates that 5% of sales will be returned within the 90-day period. During the month, the company has sales of 200,000andreturnsofsalesmadeinpriormonthsof5,000. What amount should the company record as net sales revenue for new sales made during the month?
Original LaTeX notation
A shoe retailer allows customers to return shoes within 90 days of purchase. The company estimates that 5% of sales will be returned within the 90-day period. During the month, the company has sales of $200,000 and returns of sales made in prior months of $5,000. What amount should the company record as net sales revenue for new sales made during the month?

choices

  1. $185,000
  2. $190,000
  3. $195,000
  4. $200,000

subject

professional_accounting

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Source and history

task_id
a5fe86d5-828b-5b7c-b3ce-bfaa78f1255b
task_key
all--test--a5fe86d5-828b-5b7c-b3ce-bfaa78f1255b
task_revision_id
1
config / split
all / test

Official source

initial import