Graff Inc. has total sales of \$49,800. If the company had sales returns and allowances of \$1,200 and sales discounts of \$600, what is the net sales amount?

• A. \$48,600
• B. \$48,000
• C. \$49,800
• D. \$49,200

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, as well as sales discounts, from total sales.
2. Step 2: Identify the given values in the problem. Total sales = \$49,800, Sales returns and allowances = \$1,200, Sales discounts = \$600.
3. Step 3: Write the formula for net sales: Net Sales = Total Sales - Sales Returns and Allowances - Sales Discounts.
4. Step 4: Substitute the given values into the formula: Net Sales = \$49,800 - \$1,200 - \$600.
5. Step 5: Perform the subtraction step by step to find the net sales amount. First subtract \$1,200 from \$49,800, then subtract \$600 from the result.