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
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple 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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