Definition of Net Sales | Sales After Price Reductions and Adjustments

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Net Sales Definition

Term Definition
Net sales are the gross (total) sales minus the returns, allowances, and discounts allowed.

Extended Definition
Net sales represent sales after price reductions, price adjustments, and refunds have been deducted from the total sales made. This figure can be used for reporting on financial statements and understanding a company’s revenue during a specific period of time.

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Net Sales Explained

Last Updated By

Patriot Software | Oct 15, 2015

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