Net sales is sales revenue ($10,000) less both sales returns and allowances ($500) and sales discounts ($1,000), for a net sales total of $8,500.

Which of the following will be shown on the income statement for a merchandising company?

A sales revenue section

Cost of goods sold

All of the answer choices are correct

Gross profit

This entry requires a debit to Freight-out and a credit to cash. Freight-out is not part of the cost of inventory.

Which of the following items does not result in an entry to the Inventory account under a perpetual system?

A return of Inventory to the supplier

Payment of freight costs for goods shipped to a customer

Payment of freight costs for goods received from a supplier

	A purchase of merchandise
Net sales is sales revenue ($10,000) less both sales returns and allowances ($500) and sales discounts ($1,000), for a net sales total of $8,500.

Sales revenue total to $10,000. Sales returns and allowances are $500 and sales discounts are $1,000. How much is net sales?

$11,500

$8,500

$10,500

$10,000