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 Answer
Step 1: Define Net Sales. Net sales represents the total revenue generated from sales after deducting sales returns, allowances, and discounts. Step 2: Identify relevant figures from the Trial Balance. From the provided Trial Balance for Ekerele Enterprises on 31st December 2019: • Sales (Cr): ₦200,000 • Returns Inwards (Dr): ₦8,720 (These are sales returns) • Discounts (Dr): ₦3,000 (These are discounts allowed on sales) Step 3: Calculate Net Sales. Net Sales is calculated using the formula: Net Sales = Sales - Returns Inwards - Discounts Allowed Substitute the values: Net Sales = ₦200,000 - ₦8,720 - ₦3,000 Net Sales = ₦191,280 - ₦3,000 Net Sales = ₦188,280 The net sales for Ekerele Enterprises is ₦188,280. What's next? 📸