Miatarus Company had gross sales for the current year of $920,000. Of these sales, 60% were credit sales with terms of 2/10, n/30. Customers took the sales (cash) discount on 90% of their credit purchases. Sales returns were $25,000, and sales allowances were $9,800.

Required: (1) Compute the company’s net sales for the current year.

(2) Why is it important for users to know a company’s gross sales and net sales? TYK-1