Multiple Choice
Which of the following is an example of a period cost in a company that manufactures clothing?
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4. Merchandising Operations
Net Sales
Multiple Choice
If an online store sells a printer for \$300 with sales returns of \$20 and sales discounts of \$10, what is the net sales amount for this transaction?
A
\$300
B
\$270
C
\$310
D
\$290
Verified step by step guidance1
Step 1: Understand the concept of net sales. Net sales is calculated by subtracting sales returns and sales discounts from the gross sales amount.
Step 2: Identify the gross sales amount from the problem. The gross sales amount is \$300.
Step 3: Identify the sales returns and sales discounts. Sales returns are \$20, and sales discounts are \$10.
Step 4: Use the formula for net sales: Net Sales = Gross Sales - Sales Returns - Sales Discounts. Substitute the values into the formula: Net Sales = \$300 - \$20 - \$10.
Step 5: Simplify the equation to find the net sales amount. Perform the subtraction step by step: first subtract \$20 from \$300, then subtract \$10 from the result.
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