Question

If a company has total revenues of $100,000, sales discounts of $3,000, sales returns of $4,000, and sales allowances of $2,000, the income statement will report net revenues of $91,000.
A) True
B) False

Answer 1

Answer:

A) True

Explanation:

The net revenues of any company is calculated using the following formula:

Net revenues=Gross revenues-sales discount-sales returns-allowances

                      =$100,000-$3,000-$4,000-$2,000

                      =$91,000

Based on the above discussion, the answer is A) True