High School

How is Net Cash calculated on the Agent Sales Summary?

A. Cash sales, minus refunds, plus debit memos, minus credit memos, minus Agent Automated Deductions
B. Cash sales, minus refunds, plus debit memos, plus credit memos, plus Agent Automated Deductions
C. Cash sales, minus refunds, plus Agent Automated Deductions, minus debit memos, plus credit memos
D. Cash sales, minus Agent Automated Deductions, minus refunds, plus debit memos, plus credit memos

Answer :

Final answer:

Net Cash is calculated by taking cash sales, subtracting refunds, adding debit memos, and then deducting both credit memos and Agent Automated Deductions to reflect the true cash position.

Explanation:

Net Cash on the Agent Sales Summary is calculated by taking the total amount of cash sales, deducting any refunds given, then adjusting for debit and credit memos, and finally factoring in any Agent Automated Deductions. The correct formula is Net Cash = Cash sales - refunds + debit memos - credit memos - Agent Automated Deductions. This reflects the actual cash position from sales activities when all adjustments and deductions are considered.

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