The basis of all receivables and collections is actual net sales, which is equal to ______.
A) sales minus any returns.
B) sales plus any returns.
C) sales minus returns only if they are 90 days late.
D) sales plus returns only if they are 90 days late.
E) None of the above

Question

Quizplus · Accepted Answer

Actual net sales are calculated by subtracting any returns from the total sales, as returns reduce the amount of sales that actually contribute to revenue.

The Basis of All Receivables and Collections Is Actual Net