Calculate Net Sales and Cost of Sales given the following information: Sales = R1,992,800; Sales Returns = R23,000; Opening Inventory = R500,000; Net Purchases = R1,000,000; Carriage on Purchases = R5

May 18, 2026Accounting

ScanSolve AI Answer

May 18, 2026

Step 1: Calculate Net Sales. Net sales are calculated by taking the total sales and subtracting any sales returns.

\begin{align*} Sales &= R1\,992\,800 \\ Sales Returns &= R23\,000 \\ Net Sales &= R1\,992\,800 - R23\,000 \\ &= R1\,969\,800 \end{align*}

Step 2: Calculate Cost of Sales. Cost of sales is calculated using the formula: Opening Inventory + Net Purchases + Carriage on Purchases - Closing Inventory.

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Quick Answer

Calculate Net Sales. Net sales are calculated by taking the total sales and subtracting any sales returns.

Asked on May 18, 2026Accounting

This accounting problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.

ScanSolve AI AnswerAnswered on May 18, 2026

Step 1: Calculate Net Sales. Net sales are calculated by taking the total sales and subtracting any sales returns. Sales &= R1\,992\,800 \\ Sales Returns &= R23\,000 \\ Net Sales &= R1\,992\,800 - R23\,000 \\ &= R1\,969\,800 Step 2: Calculate Cost of Sales. Cost of sales is calculated using the formula: Opening Inventory + Net Purchases + Carriage on Purchases - Closing Inventory.