Question

Wolfpack, Inc.provides goods and services to customers during the year totaling $100,000. Also during the year, customers are granted discounts, returns, and allowance of $20,000. At the end of the year, Wolfpack estimates that an additional $5,000 in discounts, returns, and allowances will occur next year as a result of sales transactions this year. What is the amount of net revenues Wolfpack will report in its current-year income statement

Answer 1

Answer: $75000

Explanation:

Net revenue is simply defined as the total amount of money that an economic entity such as an individual or firm makes from sales minus the direct expenses. The net revenue accounts for the refunds, price reductions, and the direct expenses.

From the question, we've been informed that Wolfpack, Inc.provides goods and services to customers during the year totaling $100,000 and that during the year, customers are granted discounts, returns, and allowance of $20,000. Lastly, Wolfpack estimates that an additional $5,000 in discounts, returns, and allowances will occur next year.

The amount of net revenues Wolfpack will report in its current-year income statement will be:

= $100,000 - $20,000 - $5,0000

= $75,000