Calculation of Net sales last year for Lang Company:
It is given that Gross billings for merchandise sold by Lang Company to its customers last year amounted to $11,720,000; sales returns and allowances were $370,000, sales discounts were $175,000.
Net sales can be calculated using the following formula;
Net Sales = Sales –Sales Returns –Allowances
= $11,720,000-$370,000-$175,000
= $11,175,000
Hence the Net sales last year for Lang Company is $11,175,000
Hence the correct asnwer is c. $11,175,000.
