Enter the sales on credit ($), the sales returns ($), and the sales allowances ($) into the Net Credit Sales Calculator. The calculator will evaluate and display the Net Credit Sales. ## Net Credit Sales Formula The following formula is used to calculate the Net Credit Sales. NCS = SOC - SR - SA • Where NCS is the Net Credit Sales ($)
• SOC is the sales on credit ($) • SR is the sales returns ($)
• SA is the sales allowances ($) To calculate the net credit sales, subtract the sales returns and allowances from the credit. ## How to Calculate Net Credit Sales? The following example problems outline how to calculate Net Credit Sales. Example Problem #1 1. First, determine the sales on credit ($).
1. The sales on credit ($) is given as 600. 2. Next, determine the sales returns ($).
1. The sales returns ($) is calculated as: 20. 3. Next, determine the sales allowances ($).
1. The sales allowances ($) is found to be: 40. 4. Finally, calculate the Net Credit Sales using the formula above: NCS = SOC – SR – SA Inserting the values from above yields: NCS = 600 – 20 – 40 = 540 ($)

Example Problem #2

The variables needed for this problem are provided below:

sales on credit ($) = 700 sales returns ($) = 200

sales allowances ($) = 100 This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer. NCS = SOC – SR – SA = ($)