Answer to Question #151943 in Accounting for Concetta Holman

Question

Paula calculated the net sales for her company using the following figures:

Gross sales = $75,000
Discounts = $3,500
Freight in = $4,500
Sales returns and allowances = $6,750

The net sales of Paula's company are __________.

a.)
$60,250

b.)
$64,750

c.)
$68,250

d.)
$69,250

Answer 1

Particulars Amount

Gross Sales $75,000

Less: Discounts $3,500

Less: sales return and allowances $6,750  

Net sales $64,750

Net sales = Gross sales- discounts- sales return and allowances

= 75000-3500-6750 = $64,750

Hence correct option is b i.e. $64,750.