Which one is not used to calculate net sales?
A)Purchases
B)Sales discount
C)Sales returns and allowance
D)Gross sales
E)None of these

Question

Quizplus · Accepted Answer

Purchases are not used in the calculation of net sales as they refer to the goods bought by the company for resale, whereas net sales refer to the revenue earned from the sale of those goods. The other options (B, C, and D) are all deductions from gross sales to arrive at the final net sales figure.

Which One Is Not Used to Calculate Net Sales