Given Gross Sales of $40,000 and Sales Returns and Allowances

question 5

Multiple Choice

Given gross sales of $40,000 and sales returns and allowances of $6,000, what are the net sales?

• A)$50,000
• B)$46,000
• C)$34,500
• D)$34,000
• E)None of these

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Definitions:

Valid Contract

An agreement between two or more parties that is enforceable by law.

Executory Contracts

Contracts under which both parties have unfulfilled obligations that need to be met in the future.

Bilateral Contracts

Agreements involving two parties where each commits to fulfilling an obligation to the other, such as in sales or service contracts.

Express Contracts

Contracts in which the terms are stated explicitly and can be oral or written.