Multiple Choice
If Zach makes 154 monthly payments to pay off a \$910 debt, how many years will it take him to pay off the debt?
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4. Merchandising Operations
Net Sales
Multiple Choice
Which of the following expressions will correctly calculate Aisha's net sales for June?
A
Total Sales + Cost of Goods Sold
B
Total Sales - Sales Returns and Allowances - Sales Discounts
C
Total Sales + Sales Returns and Allowances + Sales Discounts
D
Total Sales - Cost of Goods Sold
Verified step by step guidance1
Understand the concept of net sales: Net sales represent the actual revenue a company earns from its sales after accounting for deductions such as sales returns, allowances, and discounts.
Identify the components of the formula: Net Sales = Total Sales - Sales Returns and Allowances - Sales Discounts.
Analyze the options provided in the problem: Compare each option to the correct formula for net sales to determine which one matches.
Eliminate incorrect options: For example, 'Total Sales + Cost of Goods Sold' is incorrect because cost of goods sold is not part of the net sales calculation. Similarly, 'Total Sales + Sales Returns and Allowances + Sales Discounts' is incorrect because it adds deductions instead of subtracting them.
Select the correct option: The correct expression is 'Total Sales - Sales Returns and Allowances - Sales Discounts,' as it aligns with the formula for calculating net sales.
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