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5.

Heller Company offers an unconditional return policy to its customers. During the current period, the

company records total sales of $850,000, with a cost of merchandise to Heller of $340,000. Based on

past experience, Heller Company expects 4% of sales to be returned.

How much in net sales will Heller Company recognize for the current period?

A)

$850,000

B)

$360,400

C)

$816,000

D)

$489,600

E)

$510,000