Example 3: Calculating sales and returns

If you had sales of $60,000, your total for refund checks and credit memos was $1000, and your total for discounts was $2000, the tax summary report shows these amounts:

Gross receipts or sales 59,000
Returns and allowances 2,000

The QuickZoom report shows how the total for sales breaks down:

Debit  Credit  Amount
1,000  60,000  59,000

In this case, the gross sales amount is $60,000 ($59,000 net sales plus $1,000 in refund checks and credit memos), the discount and allowances amount is $3,000 ($2,000 in discounts plus $1,000 in refund checks and credit memos). The total for net sales is $57,000 ($60,000 minus $3,000).