Lewis Inc.had the following information taken from various accounts at the end of the year: What was Lewis Inc.'s net revenues for the year?
$$\begin{array} { | l | r | }
\hline \text { Sales discounts } & \$ 41,000 \
\hline \text { Deferred revenues } & \$ 32,000 \
\hline \text { Total sales } & \$ 459,000 \
\hline \text { Purchase discounts } & \$ 15,000 \
\hline \text { Sales allowances } & \$ 35,000 \
\hline \text { Accounts receivable } & \$ 205,000 \
\hline
\end{array}$$

Question

Lewis Inc.had the following information taken from various accounts at the end of the year: What was Lewis Inc.'s net revenues for the year?
$$\begin{array} { | l | r | } 
\hline \text { Sales discounts } & \$ 41,000 \
\hline \text { Deferred revenues } & \$ 32,000 \
\hline \text { Total sales } & \$ 459,000 \
\hline \text { Purchase discounts } & \$ 15,000 \
\hline \text { Sales allowances } & \$ 35,000 \
\hline \text { Accounts receivable } & \$ 205,000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

Net revenues are calculated by subtracting sales discounts and sales allowances from total sales. Thus, net revenues = $459,000 - $41,000 - $35,000 = $383,000. Deferred revenues, purchase discounts, and accounts receivable do not directly affect the calculation of net revenues.

Lewis Inchad the Following Information Taken from Various Accounts at the the End