Question

Shows the following amounts at the end of the year: Total sales revenue = $540,000; sales discounts =

$13,000; sales returns = $33,000; sales allowances = $20,000.
Compute net revenues.

Answer 1

Answer: $474,000

Step-by-step explanation:

Net revenue = Sales revenue - Sales discounts - Sales returns - Sales allowance

= 540,000 - 13,000 - 33,000 - 20,000

= $474,000

Sales returns reduces the sales figure because the goods were returned and therefore not paid for.

Sales discounts are a reduction as well because they reduce the amount paid by buyers.

Sales allowances also reduce the value of sales.