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a shoe retailer allows customers to return shoes within 90 days of purchase. the company estimates that 5% of sales will be returned within the 90-day period. during the month, the company has sales of $200,000 and returns of sales made in prior months of $5,000. what amount should the company record as net sales revenue for new sales made during the month?

Answer :

The company record as net sales revenue for new sales made during the month is $190000.

Net sales to be reported for new sales made during the month will be

=$200000-  $10000 (5% of sales,  i.e. 200000*5%)

= $190000

Net sales is the whole quantity of sales a commercial enterprise generates from income after accounting for reductions, purchaser returns, and other deductions. it's one of the top line metrics you may see at the earnings declaration of product-primarily based businesses, and it is typically measured over weekly, monthly or annual accounting intervals.

Net income is the sum of a organisation's gross sales minus its returns, allowances, and discounts. net sales calculations aren't usually obvious externally. they can frequently be factored into the reporting of pinnacle line revenues mentioned on the income announcement.

Net sales are used in comparative measures. A organization can compare their internet and gross sales to different companies inside the same field to catch issues early on earlier than they become economic burdens.

Learn more about net sales here : https://brainly.com/question/29417616

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