Net Sales + Sales Discounts + Sales Returns and Allowances equals:
A)Net Loss.
B)Gross Sales.
C)Net Income from Operations.
D)None of the above

Question

Quizplus · Accepted Answer

Net Sales is the total revenue generated from sales transactions. The Sales Discounts account represents the total amount of discounts given to customers, while the Sales Returns and Allowances account represents the total amount of refunds or allowances given to customers for returned goods or unsatisfactory services. When these accounts are added to Net Sales, the result is Gross Sales, which represents the total amount of sales revenue generated before any deductions. Therefore, the correct answer is B.