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The N et Credit Sales Formula is used to calculate Credits Sales or Sales On Credit / Account . The formula is shown below: N et Credit Sales = Credit Sales - (Sales Returns  & Allowances  + Sales Discou nts) Here sales returns and sales allowances are Contra Revenue Accounts . You Ca n Also Study, “ How To Calculate Credit Sales ” Example, if Total Sales = Rs. 500000, Cash Sales = Rs. 400000, Sales Returns = Rs. 3000 and Sales Allowances = Rs. 1000, then what is N et Credit Sales? We know Credit Sales = Total Sales - Cash Sales = 500000 - 400000 = Rs. 100000 And N et Credit Sales = Credit Sales - Sales Returns - Sales Allowances                            =   100000       -     3000           -       1000   ...

We already know that Goods sold are called Sales . Also, we learned that Sales may be made o n  Cash Basis or Credit Basis. In case of Accounts Receivable or Debtor , Sales is called Credit Sales as goods are sold on Credit Basis within the specified Accounting Cycle. Now the question How To Find Out Credit Sales or  Net Credit Sales? You May Also Study, " How To Calculate Credit Purchases " Credit Sales Calculation Credit Sales is found out by preparing Accounting Receivable T Account .                                                                   ABC Company                                      Performa of Debtors / Accounts Receivable T Account ...