Multiple Choice
Which of the following sets of numbers are required to calculate net sales for a sales forecast?
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4. Merchandising Operations
Net Sales
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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?
A
\$49,000
B
\$48,000
C
\$47,000
D
\$50,000
Verified step by step guidance1
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: . Substituting: .
Step 4: Perform the subtraction step by step. First, subtract Sales Returns and Allowances from Gross Sales: . Then subtract Sales Discounts from the result: .
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.
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