Table of contents

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

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Multiple Choice

How much is the net sales amount for the period, given the following data: Gross Sales = $50,000, Sales Returns and Allowances = $2,000, and Sales Discounts = $1,000?

$49,000

$48,000

$47,000

$50,000

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Verified step by step guidance

Step 1: Understand the formula for calculating Net Sales. Net Sales is calculated as Gross Sales minus Sales Returns and Allowances, and Sales Discounts. The formula is: Net Sales = Gross Sales - Sales Returns and Allowances - Sales Discounts.

Step 2: Identify the given values from the problem. Gross Sales = $50,000, Sales Returns and Allowances = $2,000, and Sales Discounts = $1,000.

Step 3: Substitute the given values into the formula. Using MathML, the formula becomes:

Net Sales = Gross Sales - Sales Returns & Allowances - Sales Discounts

. Substituting:

50,000 - 2,000 - 1,000

Step 4: Perform the subtraction step by step. First, subtract Sales Returns and Allowances from Gross Sales:

50,000 - 2,000

. Then subtract Sales Discounts from the result:

48,000 - 1,000

Step 5: The final result after performing the calculations will give you the Net Sales amount for the period. Ensure all values are correctly subtracted to arrive at the correct Net Sales.