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Is the Sales discount account a debit or credit?
Sales discount is subtracted from gross sales in arriving at net sales. It is a contra revenue account, so it is ALWAYS debit.
Is tax amount deducted from gross sales to arrive at net sales?
No. tax is deducted from gross sales neither is it deducted from gross profit.
Difference between sales discount and sales allowance?
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
What is the formula for net sales?
Formula for net sales is as follows: Net sales = Actual sales - sales returns and discount allowed
How is net sales calucultaed?
Net sales = Total sales - Sales returns and allowances
What is subtracted from net sales revenue to get gross profit?
Sales returns from customers and discount allowed to customers are deducted from total sales to arrive at net sales.
Price paid after the discount is subtracted?
net-price or sales price net price
Is the Sales discount account a debit or credit?
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 have profit margin and total sales how do you figure out net income?
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.
Why under normal circumstances a retailer's gross sales will exceed its net sales?
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.
Is tax amount deducted from gross sales to arrive at net sales?
No. tax is deducted from gross sales neither is it deducted from gross profit.
Provident fund contributed by employer will be added or subtracted from net income?
For the employee - it will be added to his/her net income For the employer - it will be subtracted from their net income
Difference between sales discount and sales allowance?
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
What do you call the price after the discount is subtracted?
Net priceThe 'net' price
Is net sales and and net income the same thing?
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.
Is net pay the amount you earn before deductions are subtracted?
No that's GROSS PAY Net pay is what you have after ALL deductions have been calculated and subtracted
What is the formula for net sales?
Formula for net sales is as follows: Net sales = Actual sales - sales returns and discount allowed
