Net Credit Sales Formula
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 ...