Multiple Choice
Which of the following best describes 'Net Sales' on a company's income statement?
62
views
4. Merchandising Operations
Net Sales
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
If Natalie's company had total sales of \$10,000 in October, sales returns and allowances of \$500, and sales discounts of \$200, what is Natalie's net sales for the month of October?
A
\$9,300
B
\$9,800
C
\$10,000
D
\$9,500
Verified step by step guidance1
Start by understanding the formula for Net Sales: Net Sales = Total Sales - Sales Returns and Allowances - Sales Discounts.
Identify the values provided in the problem: Total Sales = \$10,000, Sales Returns and Allowances = \$500, and Sales Discounts = \$200.
Substitute the values into the formula: Net Sales = \$10,000 - \$500 - \$200.
Perform the subtraction step-by-step: First subtract Sales Returns and Allowances (\$500) from Total Sales (\$10,000), then subtract Sales Discounts (\$200) from the result.
The final result will give you Natalie's Net Sales for the month of October, which corresponds to one of the provided answer choices.
9:04mWatch next
Master Net Sales:Sales Discounts (Gross Method) with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
