The difference between gross sales and net sales is

Question

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Gross sales refer to the total revenue earned from selling goods or services, whereas net sales refer to gross sales minus sales discounts, sales returns, and allowances. In other words, net sales represent the actual amount of revenue earned by a company from its sales activities after adjusting for any returns, discounts, or allowances given to customers. Cost of goods sold and selling and administrative expenses are used to calculate the gross margin, which is a measure of a business's profitability.

The Difference Between Gross Sales and Net Sales Is