Answer to Question #170785 in Accounting for Milan

Question

What is Gross Sales?

What is Net Sales?

Answer 1

Solution:

1.). Gross Sales refers to the total sales or revenue of an organization over a particular period of time without accounting for any deductions. The gross sales figure is calculated by summing up all sale invoices or related revenue transactions.

 

2.). Net sales refer to an organization’s gross sales minus related deductions such as sales discounts, allowances, and returns over a specified period of time. The net sales figure is calculated by deducting the sales discounts, allowances, and returns from the gross sales figure.