Sale of goods
|Gross sales||xxx (1)|
|Sales discounts||xxx (2)|
|Sales returns and allowances||xxx (3)||xxx|
|Add Excise tax, if any||xxx (4)|
- Gross sales include:
- Cash sales
- Sales on account (open account)
- Installment sales
- Deemed sales (CR WPD)
- Other amounts due from buyer such as for packaging, delivery and insurance.
- Sales discount granted and indicated in the invoice at the time of sale and the grant of which does not depend upon the happening of future event may be excluded from gross sales within the same month or quarter it was given.
- Sales returns and allowances may be deducted from the gross sales for the month or quarter in which a refund is made or a credit memo is issued.
- Excise tax (a business tax), if any, is included in the gross sales, while VAT is excluded.
For the correct answers, I would like to invite you to join my Facebook exclusive groups of aspiring CPAs for my upcoming project “CPA DREAM ACADEMY ” or sign up for flashcards free http://eepurl.com/coJBmf
JONATHAN RUIZ CPA, MIB