Explain how wholesalers and retailers account for sales of, Ask an Expert

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Explain how wholesalers and retailers account for sales of merchandise.

Net sales represents sales less deductions for discounts and merchandise returned (returns and allowances) and is a key figure on the income statement.
Sales discounts are given to customers who pay their bills promptly.
Returns and allowances have the same effect on sales that sales discounts do; that is, they reduce sales.

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Accounting Basics, Accounting

Category:- Accounting Basics
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