Question

Hardware restoration reports net sales of $50,000. if sales returns and allowances are $10,000 and sales discounts are $1,500, what are gross sales?

a. $50,000

b. $61,500

c. $58,500

d. $38,500

Answer 1

The gross sales will be given by:
Gross sales=(net sales)+(sales returns)+(discount)
net sales=$50000-
Return inwards(sales returns)=$ 10000
Discount=$ 1500
Thus;
Gross Sales=50000+10000+1500
=61,500
The answer is B. $61,500