If a company has total revenues of $100,000, sales discounts of $3,000, sales returns of $4,000, and sales allowances of $2,000, the income statement will report net revenues of $91,000.

A) True

B) False

Question

Business

Rudy Stone

23 May, 15:56

If a company has total revenues of $100,000, sales discounts of $3,000, sales returns of $4,000, and sales allowances of $2,000, the income statement will report net revenues of $91,000.

A) True

B) False

+3

Answers (1)

Know the Answer?

Tanya Hatfield · Answer 1

A) True

Explanation:

The net revenues of any company is calculated using the following formula:

Net revenues=Gross revenues-sales discount-sales returns-allowances

=$100,000-$3,000-$4,000-$2,000

=$91,000

Based on the above discussion, the answer is A) True

If a company has total revenues of $100,000, sales discounts of $3,000, sales returns of $4,000, and sales allowances of $2,000, the income statement will report net revenues of $91,000.A) TrueB) False

If a company has total revenues of $100,000, sales discounts of $3,000, sales returns of $4,000, and sales allowances of $2,000, the income statement will report net revenues of $91,000.

A) True

B) False