Question

What is relationship between sales, net sales and sales return? Explain with the help of one suitable example.

Answer 1

Answer:

sale is the transaction b/w two or more parties where buyers receives assets, services or good in exchange of money net sales is company gross sales minus it's return, allowances and discount and finally sales rerturn is the good return by the customer

Explanation:

Example: suppose a company sold a goods of 10,000 it is sales and when good of ₹6000 is return by customer it is sales return and net sales is 10000-6000= 4000.