Asked by Brookelyn Pfleging on Jun 28, 2024
Verified
Sales of $350,000 and net sales of $323,000 could reflect sales discounts of $27,000.
Sales Discounts
Sales discounts are reductions in price offered to customers, typically to encourage prompt payment or bulk purchases.
Net Sales
The amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and any discounts allowed.
- Acquire knowledge on the influence of sales discounts and returns on an organization's financial documentation.
Verified Answer
CC
Christie CzajkaJun 29, 2024
Final Answer :
True
Explanation :
If sales discounts of $27,000 were given, they would be subtracted from gross sales to arrive at net sales, resulting in a difference of $27,000 between the two figures. Therefore, it is true that sales of $350,000 and net sales of $323,000 could reflect sales discounts of $27,000.
Learning Objectives
- Acquire knowledge on the influence of sales discounts and returns on an organization's financial documentation.
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