If Omar's company had total sales of \$15,000 in October, sales returns and allowances of \$1,000, and sales discounts of \$500, what is Omar's net sales for October?

• A. \$1,500
• B. \$13,500
• C. \$14,000
• D. \$15,000

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the concept of net sales. Net sales is calculated by subtracting sales returns, allowances, and discounts from total sales. It represents the actual revenue earned from sales after these deductions.
2. Step 2: Identify the given values in the problem. Total sales are \$15,000, sales returns and allowances are \$1,000, and sales discounts are \$500.
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. Using MathML, the formula becomes: $\mathrm{Net}\mathrm{Sales}=\mathrm{Total}\mathrm{Sales}-\mathrm{Sales}\mathrm{Returns} \mathrm{and} \mathrm{Allowances}-\mathrm{Sales}\mathrm{Discounts}$
5. Step 5: Perform the subtraction step-by-step. First, subtract the sales returns and allowances (\$1,000) from the total sales (\$15,000). Then subtract the sales discounts (\$500) from the result obtained in the previous step.