Fenn Stores, Inc. had sales of $1,000,000 during December,
year 2. Experience has shown that merchandise equaling 7% of
sales will be returned within thirty days and an additional 3% will
be returned within ninety days. Returned merchandise is readily
resalable. In addition, merchandise equaling 15% of sales will be
exchanged for merchandise of equal or greater value. What
amount should Fenn report for net sales in its income statement
for the month of December year 2?