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.

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## 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**

- First, determine the sales on credit ($).
- The sales on credit ($) is given as 600.

- Next, determine the sales returns ($).
- The sales returns ($) is calculated as: 20.

- Next, determine the sales allowances ($).
- The sales allowances ($) is found to be: 40.

- 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 =** **($)