Which of the following best describes how net sales are calculated if a company sells a property for \$32,000, offers \$2,000 in sales discounts, and has \$1,000 in sales returns?

• A. \$32,000
• B. \$31,000
• C. \$29,000
• D. \$30,000

Answer: (C)

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 the gross sales amount.
2. Step 2: Identify the gross sales amount from the problem. In this case, the company sells a property for \$32,000, which represents the gross sales.
3. Step 3: Determine the sales discounts offered. The problem states that the company offers \$2,000 in sales discounts.
4. Step 4: Determine the sales returns. The problem states that there are \$1,000 in sales returns.
5. Step 5: Apply the formula for net sales: Net Sales = Gross Sales - Sales Discounts - Sales Returns. Substitute the values: Net Sales = \$32,000 - \$2,000 - \$1,000.