Sales discount is subtracted from gross sales in arriving at net sales. It is a contra revenue account, so it is ALWAYS debit.
No. tax is deducted from gross sales neither is it deducted from gross profit.
Sales Discount is given if the customer/client pays within a specified time. Example: if you pay your bill in the first 15 days you will receive a 1% discount, the full amount must be paid within 30 days. Terms: 1/15 n/30 Sales Allowanceis given if there is something wrong with the merchandise, or to show customer that you value their business. They both effect the net sales. Sales Discount is a contra Revenue account Subtracted from Sales Returns /Allowance to arrive at Net Sales. for more info feel free to contact me: Marcia Reidaxumaccounting@rogers.com 416-904-1714
Formula for net sales is as follows: Net sales = Actual sales - sales returns and discount allowed
Net sales = Total sales - sales returns and discounts
Sales returns from customers and discount allowed to customers are deducted from total sales to arrive at net sales.
net-price or sales price net price
Sales discount is subtracted from gross sales in arriving at net sales. It is a contra revenue account, so it is ALWAYS debit.
If you multiply sales times profit margin, you get Gross Profit. Then you have to subtract Total Expenses to arrive at Net Income Before Taxes, then subtract Taxes to arrive at Net Income.
It will always be greater because gross is the total sales, all the money that comes into the register. Net is what remains after costs and expenses are subtracted.
No. tax is deducted from gross sales neither is it deducted from gross profit.
For the employee - it will be added to his/her net income For the employer - it will be subtracted from their net income
Sales Discount is given if the customer/client pays within a specified time. Example: if you pay your bill in the first 15 days you will receive a 1% discount, the full amount must be paid within 30 days. Terms: 1/15 n/30 Sales Allowanceis given if there is something wrong with the merchandise, or to show customer that you value their business. They both effect the net sales. Sales Discount is a contra Revenue account Subtracted from Sales Returns /Allowance to arrive at Net Sales. for more info feel free to contact me: Marcia Reidaxumaccounting@rogers.com 416-904-1714
Net priceThe 'net' price
Net sales and Net Income are not of the same thing. Net sales is sales less its contra accounts (sales returns and allowances, sales discounts). On the other hand, net income or profit is net sales less the expenses.
No that's GROSS PAY Net pay is what you have after ALL deductions have been calculated and subtracted
Formula for net sales is as follows: Net sales = Actual sales - sales returns and discount allowed