How to Calculate Net Sales and Accounts Receivable and Cash Receipts From Customers
Net sales are the amounts of revenues that the business realizes after subtracting the total of sales returns and discount allowed on sales from the total sales amount -- gross sales. Accounts receivables are the amount a business is expecting from its customers to whom it gives goods on credit. Cash receipts are the records kept when customers make cash payments for the purchase of goods. The calculation of the net sales, accounts receivables and cash receipts references the sales book that summarizes all the sales activities of the business.
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Instructions
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Write the list of all your debtors and check to ensure that you have invoiced them correctly. Subtract any discounts you allowed to debtors from the specific debtor's account.
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Add the total value of the outstanding amounts owed by each debtor to get the totals of your accounts receivable.
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Pick your cash receipts book and check to ensure that all the receipts have the correct amount of money paid by each customer. A cash receipt contains the records of all cash sales. Add the total sales amounts on the receipts to get your cash receipts.
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Add the account receivables and the cash receipts to get your gross sales. Then subtract the return inwards -- goods returned by customers because of defects or were dispatched by error -- to get your net sales.
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Tips & Warnings
Use the bank statements to confirm that all checks have cleared if your customers pay by check.
Do not leave out the long overdue debts because they form part of the sales until when they are written-off.
