A company reported the following amounts at the end of the year: total sales revenue = $500,000; sales discounts = $10,000; sales allowances = $15,000; net revenues = $440,000. What amount did the company report for sales returns for the year? $475,000. $25,000. $35,000. $415,000.

The correct answer is $475,000

Explanation:

The question is asking for us to find sales return, which is the net amount recorded on sales of a product, after the expenses incurred during sales have been deducted. To calculate this, we will subtract the total expenses associated with sales from the total sales. This is shown as follows;

Sales revenue = $500,000

Sales discount = $10,000

Sales allowances = $15,000

Sales return = Sales revenue - ( sales discount + sales allowance)

= 500,000 - (10,000 + 15,000) = 500,000 - 15,000 = $475,000

Note that we ignore net revenues because it is not relevant in calculating the sales return, it was in fact calculated using the data from the sales return.

answerbuying in bulk;