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    dabww's Avatar
    dabww Posts: 5, Reputation: 1
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    #1

    Dec 8, 2012, 07:40 PM
    Net Sales & Gross Profit ? Please check answers
    For the fiscal year, sales were $5,280,000, sales discounts were $100,000, sales returns and allowances were $75,000, and the cost of merchandise sold was $3,000,000.

    What was the amount of net sales and gross profit?

    a. Net Sales=5,105,000

    b.Gross Profit=2,105,00

    Is that correct?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Dec 9, 2012, 05:53 AM
    Net Sales = Sales - Sales Discounts - Sales Returns & Allowances.

    Gross Profit = Net Sales - Cost of Goods Sold
    dabww's Avatar
    dabww Posts: 5, Reputation: 1
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    #3

    Dec 9, 2012, 12:55 PM
    Quote Originally Posted by pready View Post
    Net Sales = Sales - Sales Discounts - Sales Returns & Allowances.

    Gross Profit = Net Sales - Cost of Goods Sold

    That is what I believe I did, Thank You!
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