What is subtracted from sales to arrive at net sales?a. Sales returns and allowancesb. Sales discountsc. Both sales discounts and sales returns and allowancesd. Neither sales discounts nor sales returns and allowances

Net sales are calculated by subtracting sales returns and allowances and sales discounts from gross…

Answered: What is subtracted from sales to arrive…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter9: Sales And Purchases

Section: Chapter Questions

Problem 6DQ

See similar textbooks

Similar questions

What is the normal balance for each of the following accounts: (a) Purchases? (b) Sales Discounts? (c) Purchases Returns and Allowances? (d) Sales? (e) Purchases Discounts? (f) Sales Returns and Allowances?
Which of the following is an example of a contra revenue account? A. sales B. merchandise inventory C. sales discounts D. accounts payable
Which of the following is not included when computing Net Purchases? A. purchase discounts B. beginning inventory C. purchase returns D. purchase allowances
Which of the following is true about the Sales Returns and Allowances account? a. It is used to record the sale of merchandise. b. It is used to record the reduction of inventory. c. It is a contra account, deducted from sales. d. It is used to record discounts for prompt payment. e. None of the above.
Sales Returns and Allowances is classified as a contra-cost account on the income statement.
Solve this. accounting
Which of the following is not a component of Net Sales?a. Sales Returns and Allowancesb. Sales Discountsc. Cost of Goods Soldd. Sales Revenue
In accountinf for sales discounts, most companies use the a. Allowance method b. Gross price method c. Discounted price method d. Net price method
True or False: In calculating gross profit, sales revenue is first adjusted for sales returns, discounts and allowances (net sales). Select one: True False
Define and describe the differences between a sales return and a sales allowance
When the net price method is used to record credit sales, the sales discount not taken account is reported as an, a.) addition to sales returns and allowanceson the income statement b.) deduction from gross sales on the income statement c.) deduction from selling expenses on the income statement d.) addition to sales revenue on the income statement
What is the normal balance of the contra-revenue accounts: Sales Return and Sales Discount and Allowances accounts?

SEE MORE QUESTIONS

Recommended textbooks for you

College Accounting (Book Only): A Career Approach

Accounting

ISBN:

9781337280570

Author:

Scott, Cathy J.

Publisher:

South-Western College Pub

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

College Accounting (Book Only): A Career Approach

Accounting

ISBN:

9781337280570

Author:

Scott, Cathy J.

Publisher:

South-Western College Pub

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

College Accounting, Chapters 1-27 (New in Account…

Accounting

ISBN:

9781305666160

Author:

James A. Heintz, Robert W. Parry

Publisher:

Cengage Learning

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

What is subtracted from sales to arrive at net sales? a. Sales returns and allowances b. Sales discounts c. Both sales discounts and sales returns and allowances d. Neither sales discounts nor sales returns and allowances