Table of contents

Skip topic navigation

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

4. Merchandising Operations

Net Sales

Financial Accounting

4. Merchandising Operations

Net Sales

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following best describes how net sales are calculated if a company sells a property for $32,000, offers $2,000 in sales discounts, and has $1,000 in sales returns?

$32,000

$31,000

$29,000

$30,000

Previous problemNext problem

Verified step by step guidance

Step 1: Understand the concept of net sales. Net sales are calculated by subtracting sales discounts and sales returns from the gross sales amount.

Step 2: Identify the gross sales amount from the problem. In this case, the company sells a property for $32,000, which represents the gross sales.

Step 3: Determine the sales discounts offered. The problem states that the company offers $2,000 in sales discounts.

Step 4: Determine the sales returns. The problem states that there are $1,000 in sales returns.

Step 5: Apply the formula for net sales: Net Sales = Gross Sales - Sales Discounts - Sales Returns. Substitute the values: Net Sales = $32,000 - $2,000 - $1,000.