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Net credit sales?
Is the same thing as Net Sales.
How do you calculate net credit sales?
Total sales - cash sales - sales return
Does cash sales and credit sales equal net sales?
yes they do but if the cash sales and credit sales ar the same number they equal subsales
Where can one find information on Net Credit Sales?
One can find a lot of information regarding Net Credit Sales from many financial institutes and businesses and Ask also has information regarding this topic.
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.
How do you estimate uncollectible accounts on the basis of net credit sales?
Uncollectable accounts may be estimated as a certain percentage of net credit sales or may be estimated on basis of past experiance as well as un-payable time by making uncollectable aging schedule.
Does sales returns and allowances have a normal debit balance?
That is correct. Sales and returns allowances is what is called a "Contra" account because it exists to reduce the net balance of an account. Sales is a credit account, so you debit sales returns and allowances in order to reduce your net sales.
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.
What is the formula for net sales?
Formula for net sales is as follows: Net sales = Actual sales - sales returns and discount allowed
How do you calculate gross sales?
NET SALES: Gross sales minus returns, discounts, and allowances. GROSS SALES: Total invoice value of sales, before deducting for customer discounts, allowances, or return.No. The sales tax is posted as a credit to the Sales Tax Payable Account. So, if you had a $100 sale plus $5 sales tax, you would debit cash $105, credit Sales $100 and credit Sales Tax Payable $5...
What will a decrease a revenue and a decrease in assets?
A sales refund will reduce income (debit to Sales Returns) and assets (credit to cash). A debit to Depreciation Expense and a credit to Accumulated Depreciation will reduce assets and net income.
Do you use net receivable in calculating AR turnover?
The equation for AR Turnover is: AR Turnover = Net Credit Sales / Average AR (/=divided by) Some companies' will report only sales, however this can affect the ratio depending on the amount of cash sales.
