A negative return on sales (ROS) occurs when a company's net income is less than its total sales revenue, indicating that it is not generating profit from its sales activities. This situation often arises from high operating expenses, cost of goods sold, or other financial challenges. A negative ROS can signal inefficiencies or poor management, prompting the need for strategic adjustments to improve profitability. It can also affect investor confidence and the company's overall financial health.
Sales return is reduction in sales as customer returns goods for any reason and it is not expense.
Rate of Return on Net Sales = (Net Income) / (Total Sales)
yes
Total sales - cash sales - sales return
sales+sales return=net sales
[Debit] Sales return [Credit] Cash /bank [Debit] Sales [Credit] Sales return
sales is when u sale it dimwitt and sales return is when u return it dumbie
Sales return is reduction in sales as customer returns goods for any reason and it is not expense.
Return on sales = 814100 / 9275000 = 8.777 %
Rate of Return on Net Sales = (Net Income) / (Total Sales)
Cash Ac Dr to Sales AC To sales Return Alc
[Debit] sales return [credit] cash / bank
yes
no
[Debit] Sales Return account [Credit] Cash account
When the sold items are returned back to the seller by the customer then, it is Sales Return for the seller.
Total sales - cash sales - sales return