Multiple Choice
Mia's gross sales for the year are \$50,000. She had sales returns and allowances of \$2,000 and sales discounts of \$1,000. What is Mia's net sales for the year?
19
views
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
In which balance sheet column is a net loss recorded on the work sheet?
A
In the credit column of the balance sheet section
B
In the debit column of the income statement section
C
In the debit column of the balance sheet section
D
In the credit column of the income statement section
Verified step by step guidance1
Understand the structure of a worksheet: A worksheet is a tool used in accounting to prepare financial statements. It includes sections for the trial balance, adjustments, adjusted trial balance, income statement, and balance sheet.
Recognize the impact of net loss: A net loss occurs when expenses exceed revenues. This affects the equity section of the balance sheet, as it reduces retained earnings.
Determine the placement of net loss: On the worksheet, a net loss is recorded in the debit column of the balance sheet section because it decreases equity (retained earnings).
Understand the relationship between the income statement and balance sheet: The net loss is first calculated in the income statement section and then carried over to the balance sheet section to adjust equity.
Verify the correct column: Ensure that the net loss is recorded in the debit column of the balance sheet section, as this reflects the reduction in equity due to the loss.
9:04mWatch next
Master Net Sales:Sales Discounts (Gross Method) with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
