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The fourth step is
Net Sales
The amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and any discounts allowed.
Accounts Receivable
The money owed to a company by its customers for goods or services delivered or used but not yet paid for.
Accounts Receivable Turnover
A financial ratio that measures how efficiently a company collects revenue from its credit sales, calculated by dividing net credit sales by the average accounts receivable.
Net Credit Sales
The total value of sales made on credit during a period, minus any sales returns or allowances.
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