Explain the difference between sales revenue and net sales.

Question

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Answer 1

Question

Chapter 6, Problem 1Q

To determine

Explain the difference between sales revenue and net sales.

Expert Solution & Answer

Explanation of Solution

Sales revenue is an activity of selling the merchandise inventory of a business.

Sales discount is the amount given as concession to the buyer by the seller for prompt payments. In the case of sales discount, the goods are in the possession of the seller. It is the amount allowed as concession by the seller to the buyer for accepting the defective or damaged goods is known as sales allowance. In the case of sales allowance, the goods are in the possession of the buyer.

Thus, net sales are determined as reduction of sales discount or sales allowance from sales revenue of the company.

Conclusion

Thus, differences between sales revenue and net sales have been explained.

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Problem No. 2 The trial balance of Cleint Lumanao Nacho Supplies on February 10, 2025, before accepting Shila Tajonera as partner is shown as follows: Account Title Debit Credit Ato Cash reening smuo P 100,000 Accounts Receivable 250,000 Allowance for Uncollectible Accounts P 20,000 o Merchandise Inventory Equipment Accumulated Depreciation Accounts Payable Notes Payable 120,000 275,000 55,000 50,000 82,000 538,000 Lumanao, Capital Total P 745,000 P 745,000 Tajonera offered to invest cash to get a capital credit equal to one-half of Lumanao's capital after giving effect to the adjustments below. Lumanao accepted the offer. Valuation of some of the assets and liabilities of Lumanao, as agreed by the partners, are the following: • The merchandise is to be valued at P93,000. The accounts receivable is estimated to be 90% collectible. • The equipment is to be valued at P200,000. The partners also agreed that the name of the partnership will be Nacho Business. Required: 1. In the books of…

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Answer 2

Question

Chapter 6, Problem 1Q

To determine

Explain the difference between sales revenue and net sales.

Expert Solution & Answer

Explanation of Solution

Sales revenue is an activity of selling the merchandise inventory of a business.

Sales discount is the amount given as concession to the buyer by the seller for prompt payments. In the case of sales discount, the goods are in the possession of the seller. It is the amount allowed as concession by the seller to the buyer for accepting the defective or damaged goods is known as sales allowance. In the case of sales allowance, the goods are in the possession of the buyer.

Thus, net sales are determined as reduction of sales discount or sales allowance from sales revenue of the company.

Conclusion

Thus, differences between sales revenue and net sales have been explained.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 6, Problem 1Q

To determine

Explain the difference between sales revenue and net sales.

Expert Solution & Answer

Explanation of Solution

Sales revenue is an activity of selling the merchandise inventory of a business.

Sales discount is the amount given as concession to the buyer by the seller for prompt payments. In the case of sales discount, the goods are in the possession of the seller. It is the amount allowed as concession by the seller to the buyer for accepting the defective or damaged goods is known as sales allowance. In the case of sales allowance, the goods are in the possession of the buyer.

Thus, net sales are determined as reduction of sales discount or sales allowance from sales revenue of the company.

Conclusion

Thus, differences between sales revenue and net sales have been explained.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 6, Problem 1Q

To determine

Explain the difference between sales revenue and net sales.

Expert Solution & Answer

Explanation of Solution

Sales revenue is an activity of selling the merchandise inventory of a business.

Sales discount is the amount given as concession to the buyer by the seller for prompt payments. In the case of sales discount, the goods are in the possession of the seller. It is the amount allowed as concession by the seller to the buyer for accepting the defective or damaged goods is known as sales allowance. In the case of sales allowance, the goods are in the possession of the buyer.

Thus, net sales are determined as reduction of sales discount or sales allowance from sales revenue of the company.

Conclusion

Thus, differences between sales revenue and net sales have been explained.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 6, Problem 1Q

To determine

Explain the difference between sales revenue and net sales.

Expert Solution & Answer

Explanation of Solution

Sales revenue is an activity of selling the merchandise inventory of a business.

Sales discount is the amount given as concession to the buyer by the seller for prompt payments. In the case of sales discount, the goods are in the possession of the seller. It is the amount allowed as concession by the seller to the buyer for accepting the defective or damaged goods is known as sales allowance. In the case of sales allowance, the goods are in the possession of the buyer.

Thus, net sales are determined as reduction of sales discount or sales allowance from sales revenue of the company.

Conclusion

Thus, differences between sales revenue and net sales have been explained.

Answer 6

Chapter 6, Problem 1Q

To determine

Explain the difference between sales revenue and net sales.

Expert Solution & Answer

Explanation of Solution

Sales revenue is an activity of selling the merchandise inventory of a business.

Sales discount is the amount given as concession to the buyer by the seller for prompt payments. In the case of sales discount, the goods are in the possession of the seller. It is the amount allowed as concession by the seller to the buyer for accepting the defective or damaged goods is known as sales allowance. In the case of sales allowance, the goods are in the possession of the buyer.

Thus, net sales are determined as reduction of sales discount or sales allowance from sales revenue of the company.

Conclusion

Thus, differences between sales revenue and net sales have been explained.

Answer 7

Chapter 6, Problem 1Q

To determine

Explain the difference between sales revenue and net sales.

Answer 8

Expert Solution & Answer

Explanation of Solution

Sales revenue is an activity of selling the merchandise inventory of a business.

Sales discount is the amount given as concession to the buyer by the seller for prompt payments. In the case of sales discount, the goods are in the possession of the seller. It is the amount allowed as concession by the seller to the buyer for accepting the defective or damaged goods is known as sales allowance. In the case of sales allowance, the goods are in the possession of the buyer.

Thus, net sales are determined as reduction of sales discount or sales allowance from sales revenue of the company.