Sales discounts and sales returns and allowances are deducted from gross revenue to determine net sales revenue.

Question

Quizplus · Accepted Answer

This is correct. Sales discounts and sales returns and allowances are subtracted from gross sales to calculate net sales revenue. This is because these discounts and returns represent a reduction in revenue earned from the sale of goods or services. Net sales revenue is the amount of revenue that the company actually earns after accounting for these deductions.

Sales Discounts and Sales Returns and Allowances Are Deducted from Gross