Question

Gross billings for merchandise sold by cullumber company to its customers last year amounted to $12720000; sales returns and allowances were $360000, sales discounts were $175300, and freight-out was $139400. net sales last year for cullumber company were

Answer 1

$12,184,700

Explanation:

The computation of net sales last year is shown below:-

Net sales = Sales - Sales return and allowances - Sales discount

= $12,720,000 - $360,000 - $175,300

= $12,184,700

Therefore for determining the net sales we simply applied the above formula and we have not considered the freight out as it is not relevant.