How to you compute net sales? I have this assignment due on Sunday and one of the problems is to compute the net sales for the company. The assignment has the adjusted trial balance, I just do not know how to compute net sales.

Thanks,

Jennifer

Sales less discounts less returns & allowances. i.e. gross sales minus anything that would reduce sales.

I do not understand the answer, it would be easier to understand if there were an example.

Formula to Compute Net Sales

Sales
Less: Sales Returns & Allowances
Sales Discounts
NET SALES
:)
EX:
Sales = $12000
Less: Sales Returns & Allowances = (2000)
Sales Discounts = (1000)
NET SALES = $9000

OR
$12000
- 2000
- 1000
9000