Ryerson Co.provides goods and services to customers during the year totaling $100,000.Also during the year,customers are granted discounts,returns,and allowance of $20,000.At the end of the year,Ryerson estimates that an additional $5,000 in discounts,returns,and allowances will occur next year as a result of sales transactions this year.What is the amount of net revenues Ryerson will report in its current-year income statement?

Question

Quizplus · Accepted Answer

Net revenues are calculated by subtracting discounts, returns, and allowances from total sales. Ryerson's net revenues are $100,000 - $20,000 - $5,000 = $75,000.