1.

During August, 2013, Baxter's Supply Store generated revenues of $30,000. The company's expenses were as follows: cost of goods sold of $18,000 and operating expenses of $2,000. The company also had rent revenue of $500 and a gain on the sale of a delivery truck of $1,000. Baxter's operating income for the month of August, 2013 is

	A.	$11,500.
	B.	$10,500.
	C.	$12,000.
	D.	$10,000.

2.

A credit sale of $2,000 is made on April 25, terms 2/10, n/30, on which a return of $125 is granted on April 28. What amount is received as payment in full on May 4?

A.

$1,875.00

B.

$2,000.00

C.

$1,837.50

D.

$1,960.00

3.

Financial information is presented below:

Operating Expenses	$ 45,000
Sales Returns and Allowances	9,000
Sales Discounts	6,000
Sales Revenue	160,000
Cost of Goods Sold	87,000

The amount of net sales on the income statement would be

	A.	$151,000.
	B.	$160,000.
	C.	$145,000.
	D.	$154,000.