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A company had cash sales of $49,527, credit sales of $38,540, sales returns and allowances of $7,100 and sales discounts of $4,375. The company's net sales for this period equals what? (I added cash sales
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30 votes
A company had cash sales of $49,527, credit sales of $38,540, sales returns and allowances of $7,100 and sales discounts of $4,375. The company's net sales for this period equals what? (I added cash sales and credit sales. Then I subtracted sales returns and allowances and sales discounts. Not sure if my calculations are correct.) Please explain your answers.

User Panoptical
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1 Answer

17 votes
17 votes

Answer:

The company's net sales for this period equal to $76,592

Step-by-step explanation:

First we need to calculate the total sales using the following formula

Total Sales = Cash Sales + Credit sales

Where

Cash Sales = $49,527

Credit sales = $38,540

Placing values in the formula

Total Sales = $49,527 + $38,540

Total Sales = $88,067

Now use the following formula to calculate the net sales

Net Sales = Total Sales - Sales returns and allowances - Sales discount

Where

Total Sales = $88,067

Sales returns and allowances = $7,100

Sales discount = $4,375

Placing values in the formula

Net Sales = $88,067 - $7,100 - $4,375

Net Sales = $76,592

User Pankus
by
2.8k points
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