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Is the purchases returns included in the calculation of cost of sales?
Wiki User
∙ 9y ago
Yes purchase returns are deducted from purchases to calculate the net amount of purchases and that's why included in cost of sales.
Wiki User
∙ 9y ago
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How do you calculate actual sales?
Forumula for calculation of actual saees: Actual sales = (number of units sold * Sales price ) - sales returns and discounts
Formula for cost of goods available for sale?
purchases+purchases discounts+sales returns and allowances+frieght charges+ begining inventory
What is meant by the term carriage on sales?
Carriage on purchases is an expense incurred when the business delivers goods to their customers and it is not included in the amount of sales.
What are examples of books of original entry?
Examples of books of original entry are the sales day book, the purchases day book, the sales returns book, the purchases day book, the journal, and the cash book. These are books used in accounting.
Net sales revenue?
The amount sold after customers' returns, sales discounts, and other allowances are taken away from gross sales. (Companies usually just show the net salesamount on their income statements, omitting returns, allowances, and the like.) Net (sales) revenue = (beg+purchases) - end
Given:gross sales, $170,000; sales returns and allowances, $9,000; beginning inventory, $8,000; net purchases, $18,000; ending inventory, $5,000; and operating expenses, $56,000?
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If Sales is 8000 and Purchase is 4000 then what does it mean that 60 percent Sales and Purchases are for cash?
It means that 60% of sales and purchases are done on cash basis while 40% of purchases and sales are done on credit basis.
The Sales Returns and Allowances account is classified as a?
Sales Returns and Allowances are contra revenue accounts because they reduce that total amount of sales. [Sales-Sales returns and allowances=Net sales]. They are reported on the income statement.
What is a sales returns day book?
Sales returns day book only record the sales returns in any day and no other entry is recorded in it.
Is turnover calculated by first deducting items like carriage in and sales returns from sales or is it total sales without deductions?
it is sales less sales returns
Is sales return an income account?
Yes, sales returns does appear in the income statement:Revenues:Sales 250,000less Sales returns 25,000
Is sales returns and allowance a current liability?
Sales returns and allowances is not a liability rather these are expenses or reduction in actual sales
