Retailers account for sales of merchandise

Reference no: EM13953412

Explain how wholesalers and retailers account for sales of merchandise.

Net sales represents sales less deductions for discounts and merchandise returned (returns and allowances) and is a key figure on the income statement.
Sales discounts are given to customers who pay their bills promptly.
Returns and allowances have the same effect on sales that sales discounts do; that is, they reduce sales.

Reference no: EM13953412

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