Multiple Choice
Which of the following best defines 'Net Sales' in financial accounting?
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4. Merchandising Operations
Net Sales
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A sweater that normally sells for $87 is sold to a customer with a $12 sales discount and a $5 sales return. What is the net sales amount for this transaction?
A
$70
B
$82
C
$75
D
$87
Verified step by step guidance1
Step 1: Understand the components of the transaction. The original price of the sweater is $87. There is a $12 sales discount applied, and a $5 sales return is also involved.
Step 2: Calculate the adjusted price after applying the sales discount. Subtract the sales discount from the original price: .
Step 3: Account for the sales return. Subtract the sales return amount from the adjusted price obtained in Step 2: .
Step 4: The result from Step 3 represents the net sales amount for the transaction. This is the final amount the customer pays after all adjustments.
Step 5: Compare the calculated net sales amount to the provided answer choices ($70, $82, $75, $87) to identify the correct answer.
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