Lewis Company’s usual sales terms are net sixty days, FOB
shipping point. Sales, net of returns and allowances, totaled
$2,300,000 for the year ended December 31, year 2, before yearend
adjustments. Additional data are as follows:
• On December 27, year 2, Lewis authorized a customer
to return, for full credit, goods shipped and billed at
$50,000 on December 15, year 2. The returned goods
were received by Lewis on January 4, year 3, and a
$50,000 credit memo was issued and recorded on the
• Goods with an invoice amount of $80,000 were billed
and recorded on January 3, year 3. The goods were
shipped on December 30, year 2.
• Goods with an invoice amount of $100,000 were billed
and recorded on December 30, year 2. The goods were
shipped on January 3, year 3.
Lewis’ adjusted net sales for year 2 should be