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10 October, 14:12

If a company records $42.5m in Revenues for the year and the balances in Sales Discounts and Sales Returns are $2m and $1.5m respectively, what is the value of Net Revenue in millions?

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  1. 10 October, 14:53
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    Net Revenue in millions is $39.

    This means revenue is $39 million

    Explanation:

    Sales discount and sales returns actually result in a decrease in the revenue for the period. Discounts are given on bulk purchase (usually) while returns are made when goods are probably defective.

    Net Revenue in millions = $42.5 - $2 - $1.5

    = $39
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