For the fiscal year, sales were $8,300,000, sales discounts were $100,000, sales returns and...
Question:
For the fiscal year, sales were $8,300,000, sales discounts were $100,000, sales returns and allowances were $45,000, and the cost of merchandise sold was $5,000,000. What was the amount of net sales?
Net Sales
Sales is the value of goods sold or services rendered to the customers. And the net sales is the value of sales after adjusting sales discounts, sales allowances, rebates, returns, etc. All these rebates and discounts are contra account to sales and hence, adjusted in the books against sales.
Answer and Explanation: 1
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The net sales for the fiscal year is $8,155,000
Explanation
| Particulars | Amount ($) |
|---|---|
| Sales | 8,300,000 |
| Less: Sales discounts | $100,000 |
| Less: Sales... |
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Net Sales: Definition & Formula
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Understand what net sales in a business are, their importance, and their uses. Know the net sales formula and learn how to compute it throughout examples.
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