Question

According to the textbook readings, If gross sales for the shoe department for spring were $2,675,000 and the reductions taken were $1,284,000, what are the net sales?

Answer 1

Answer:

Net sales= $1,391,000

Explanation:

Net sales of an organisation is total sales less deductions made during sales process. The deductions includes sales discounts given to customers, returns from customers for various reasons (defects, specifications not met), and allowances (customer willing to pay less for a defective product).

Therefore

Net sale= Gross sale - Deductions

Net sales= 2,675,000- 1,284,000

Net sales= $1,391,000