A merchandiser reports Sales of $1,000, sales returns of $40 and sales discounts of $20 for the period. What is net sales (net revenue) for the statement of profit or loss?

1. Net Sales = Sales - Sales Returns - Sales Discounts. 2. Sales returns and discounts together = $40 + $20 = $60. 3. Net Sales = $1{,}000 - $60 = $940. 4. $960 wrongly subtracts only the $40 return; $980 subtracts only the $20 discount; $1,000 subtracts nothing. _Source: Jonick, Principles of Financial Accounting (CC BY-SA 4.0), §3.2 "Merchandising Income Statement", p.93_