If Martin, Inc. sold $550,000 worth of merchandise, had $50,000 returned, and then the balance paid during the 2% discount period, how much was Martin's net sales?

Question

Quizplus · Accepted Answer

Net sales are calculated by subtracting returns and discounts from total sales. Martin, Inc. had $550,000 in sales, $50,000 in returns, and a 2% discount on the remaining $500,000, which is $10,000. Therefore, the net sales are $490,000.