Omar has saved \$1,000 from his sales. If he had total sales of \$1,200 and sales returns and allowances of \$200, what is his net sales amount?

• A. \$1,200
• B. \$1,000
• C. \$200
• D. \$800

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the concept of net sales. Net sales is calculated by subtracting sales returns and allowances from total sales. It represents the actual revenue earned from sales after accounting for any returns or discounts.
2. Step 2: Identify the given values in the problem. Total sales are \$1,200, and sales returns and allowances are \$200.
3. Step 3: Use the formula for net sales: Net Sales = Total Sales - Sales Returns and Allowances. In MathML, this can be expressed as: $\mathrm{Net}\mathrm{Sales}=\mathrm{Total}\mathrm{Sales}-\mathrm{Sales}\mathrm{Returns} \mathrm{and} \mathrm{Allowances}$
4. Step 4: Substitute the given values into the formula. Replace 'Total Sales' with \$1,200 and 'Sales Returns and Allowances' with \$200.
5. Step 5: Perform the subtraction operation to find the net sales amount. This will give you the final value of net sales.