Question

If a company records $42.5m in Revenues for the year and the balances in Sales Discounts and Sales Returns are $2m and $1.5m respectively, what is the value of Net Revenue in millions?

Answer 1

Answer:

Net Revenue in millions is $39.

This means revenue is $39 million

Explanation:

Sales discount and sales returns actually result in a decrease in the revenue for the period. Discounts are given on bulk purchase (usually) while returns are made when goods are probably defective.

Net Revenue in millions = $42.5 - $2 - $1.5

= $39