John Hay In: Category - Revenue or IncomeWhat is the formula for net credit sales?formulanet credit sales ShareFacebook1 AnswerVotedRecent Dheeraj 2020-08-12T23:25:13+05:30Added an answer on August 12, 2020 at 11:25 pm This answer was edited. Sure, John, firstly I would like to explain the meaning of net credit sales before moving onto the formula of net credit sales. To make the concept easy and transparent, I would like to add a practical example for better understanding. Net Credit SalesCredit sales refer to the total value of sales which an organization (or) company makes on credit. If the company offers any discount to its customers on the credit sale of goods (or) if sales returns occur, then such amounts must be deducted from the total value of credit sales to arrive at Net credit sales figure.In simple terms, net credit sales refer to the total revenue generated by the company when it sells goods and services to its customers on credit, reducing the amount of sales allowance and sales return from the total credit sales.Net Credit Sales FormulaNet Credit Sales = Total Credit Sales – Sales Returns – Discount on SalesExample-Apple Inc furnishes you the following sales information. Calculate the value of Net credit sales.ParticularsAmountTotal Sales4,50,000Cash Sales1,50,000Credit Sales3,00,000Goods Returned by Customers1,00,000Sales Allowance/Discount60,000Net Credit Sales = Credit Sales – Sales Returns – Discount allowed on Sales= 3,00,000 – 1,00,000 – 60,000= 1,40,0000Reply Share ShareShare on FacebookShare on TwitterShare on LinkedInShare on WhatsAppLeave an answerCancel replyYou must login or register to add a new answer.