Answer:
c. $12,175,000.
Explanation:
Given: Merchandise sold by Lang company= $12520000.
Sales return and allowances= $270000.
Discount= $140000.
While calculating net sales, freight out charges is not included as it an selling expense and it should be included while calculating Gross profit of the company.
Here, we have to find the last year net sales for Lang company.
∴ [tex]Net sales= sales\ revenue- (sales\ returns\ and\ allowances + sales\ discount)[/tex]
⇒ Net sales = [tex]12520000-(270000 + 75000) = 12520000 - 345000[/tex]
∴Net sales= [tex]\$ 12175000[/tex]
