Multiple Choice
The goods a wholesale company purchases in finished form are referred to as what?
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4. Merchandising Operations
Net Sales
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If a company sells goods with a sales price of \$450 and allows sales returns of \$50 and sales discounts of \$20, what is the net sales amount?
A
\$380
B
\$400
C
\$450
D
\$420
Verified step by step guidance1
Step 1: Understand the concept of net sales. Net sales is calculated by subtracting sales returns and sales discounts from the total sales revenue.
Step 2: Identify the given values in the problem. The sales price is \$450, sales returns are \$50, and sales discounts are \$20.
Step 3: Write the formula for net sales: Net Sales = Total Sales Revenue - Sales Returns - Sales Discounts.
Step 4: Substitute the given values into the formula: Net Sales = \$450 - \$50 - \$20.
Step 5: Perform the subtraction step by step to calculate the net sales amount. First subtract sales returns (\$50) from the sales price (\$450), then subtract sales discounts (\$20) from the result.
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