Sales Returns and Allowances and Sales Discounts Are Subtracted from Sales

question 115

True/False

Sales returns and allowances and sales discounts are subtracted from sales in reporting net sales in the income statement.

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Definitions:

Weighted-average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, assigning weights to each number before averaging.

Materials

Raw inputs or supplies that are converted into finished goods through the manufacturing process.

Beginning Work

Refers to the initial inventory of goods that are in the process of production at the start of a financial period.

First-in

Often related to inventory management, indicating the principle that the first items produced or acquired are the first to be used or sold.