PRC-1 · Chapter 1 · Question 41 of 100
'Metro Retailers' recorded gross sales of Rs. 800,000 during the year. However, customers returned goods worth Rs. 40,000, and the business allowed settlement discounts amounting to Rs. 15,000. What is the correct figure for net sales?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Rs. 745,000
Explanation
Net sales are calculated by deducting both sales returns and any discounts allowed from the gross sales figure. Therefore, Rs. 800,000 - Rs. 40,000 - Rs. 15,000 equals Rs. 745,000.
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