Asked by
AmjAÐ AlBander
on Nov 15, 2024
Verified
Net Sales equals Gross Sales - Sales Returns and Allowances - Accounts Receivable.
Net Sales
The final sales figure a company reports, after deducting returns, discounts, and compensations for damaged or missing products from its total sales.
Gross Sales
The total sales revenue of a company without deducting any sales returns, allowances, or discounts.
Sales Returns and Allowances
Transactions where customers return goods or receive discounts due to issues, reducing total sales revenue.
- Ascertain the influence of sales returns and discounts on the determination of net sales and net income.
Verified Answer
ML
Learning Objectives
- Ascertain the influence of sales returns and discounts on the determination of net sales and net income.