Question

Garza company had sales of $136,200, sales discounts of $2,050, and sales returns of $3,270. garza company's net sales equals:

Answer 1

Net sales is calculated by taking the sales and subtracting any returns, allowances and/or discounts from it. After that, the analysts can use the net sales to show the actual income the business earned for that period.

Net sales = Sales - Discounts - Allowances - Returns
Net sales = $136,200 - $2,050 - $3,270
Net sales = $130,880