If a firm had sales of $67,000 during a period and sales returns and allowances of $6,500, its net sales were: Multiple Choice $60,500. $73,500. $67,000. $6,500. A wholesale business sells goods with a list price of $860 and a trade discount of 40 percent. The net price is: Multiple Choice $344.00. $860.00. $1,204.00. $516.00. A retailer recorded the following in June: cash sales $3,800; credit sales, $8,500; sales returns and allowances, $1,700. Assuming the sales tax rate is 5 percent, the entry to record the sales tax payment includes a debit to Sales Tax Payable for: Multiple Choice $530. $340 $425. $615. The use of a purchases journal strengthens the audit trail. True or False A purchase of merchandise for cash should be recorded in the purchases journal. True or False