A company reports gross sales of \$3,000 per month. If it offers \$200 in sales discounts and \$100 in sales returns each month, what is the company's net sales for the month?

• A. \$2,800
• B. \$2,700
• C. \$2,900
• D. \$3,000

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the concept of net sales. Net sales are calculated by subtracting sales discounts and sales returns from gross sales. The formula is: Net Sales = Gross Sales - Sales Discounts - Sales Returns.
2. Step 2: Identify the given values from the problem. Gross sales are \$3,000, sales discounts are \$200, and sales returns are \$100.
3. Step 3: Substitute the given values into the formula. Using MathML, the formula becomes: $\mathrm{Net}\mathrm{Sales}=\mathrm{Gross}\mathrm{Sales}-\mathrm{Sales}\mathrm{Discounts}-\mathrm{Sales}\mathrm{Returns}$
4. Step 4: Perform the subtraction step by step. First, subtract the sales discounts (\$200) from the gross sales (\$3,000). Then subtract the sales returns (\$100) from the result.
5. Step 5: The final value obtained after performing the calculations will be the company's net sales for the month.