Answer:
The amount of net revenues for Eric Company is 780,000
Explanation:
Net revenue is the sales (or total revenue) of a company from which returns, discounts, and other items are subtracted from.
Net revenue is calculated by following formula:
Net Revenue = Gross Revenue – Directly Related Selling Expenses (These are: Sales Returns, Sales Discounts....)
Eric Company has the data: Total Revenues 860,000
, Sales Returns and Allowances 50,000
, Sales Discounts 30,000
Net revenues for Eric Company = 860,000 - (50,000 + 30,000) = 860,000 - 80,000 = 780,000
