The amount of net sales it should record is $9,800,000 if the total sales are $10 million.
The net sales can be described as the total sales minus returns and discounts. In this case, the formula for net sales can be given as;
Net sales = Total sales - return
As the expected return of this company is 2%, we first calculate the expected amount of returns from the total sales of $10 million.
Return = 2% of $10,000,000
Return = (2/100) × 10,000,000
Return = 0.02 × 10,000,000
Return = $200,000
Now by using subtraction, we calculate the net sales as follows;
Net sales = $10,000,000 - $200,000
Net sales = $9,800,000
Therefore, the amount of net sales it should record for this period is calculated to be $9,800,000
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