Financial information is presented below: $$\begin{array} { l r }
\text { Operating expenses } & \$ 35,000 \
\text { Sales returns and allowances } & 12,000 \
\text { Sales discounts } & 3,000 \
\text { Sales revenue } & 140,000 \
\text { Cost of goods sold } & 85,000
\end{array}$$ The amount of net sales on the income statement would be
A) $128,000.
B) $125,000.
C) $140,000.
D) $137,000.

Question

Financial information is presented below: $$\begin{array} { l r } 
\text { Operating expenses } & \$ 35,000 \
\text { Sales returns and allowances } & 12,000 \
\text { Sales discounts } & 3,000 \
\text { Sales revenue } & 140,000 \
\text { Cost of goods sold } & 85,000
\end{array}$$ The amount of net sales on the income statement would be
A) $128,000.
B) $125,000.
C) $140,000.
D) $137,000.

Quizplus · Accepted Answer

Net sales is calculated by subtracting sales returns and allowances and sales discounts from sales revenue: $140,000 - $12,000 - $3,000 = $125,000.

Financial Information Is Presented Below The Amount of Net Sales on the Income Statement Would