Net Sales

Net sales is calculated by subtracting sales returns and allowances and sales discounts from sales. Suppose Music Suppliers, Inc., sells merchandise worth $116,500 during June and, in conjunction with these sales, handles $9,300 in returns and allowances and $1,200 in sales discounts. The company's net sales for June equal $106,000.

Music Suppliers, Inc. Calculation of Net Sales For the Month Ended June 30, 20X3

Sales		$116,500
Less: Sales Returns and Allowances	$9,300
Sales Discounts	1,200	10,500
Net Sales		$106,000