Read Only - This is an older file format. Chan... Record Debit 392,000 8,000 Credit Cash. Sales Discounts (+xR). 400,000 3. Sales returns and allowances and sales discounts should be subtracted from sales revenue to compute net sales: Sales Revenue Sales Returns and Allowances Sales Discounts Net Sales $8,000 2%X($405,000-$5,000) $405,000 5,000) 8,000) 392,000 4. Gross profit and gross profit percentage are calculated as follows: In Dollars 392,000 137,200 254,800 Percent of Net Sales 1000% 35.0 650% Net Sales tcalculated in 3,) Cost of Goods Sold Gross Profit The 65% gross profit percentage indicates that Oakley generates 65 cents of gross profit on each dollar of sales. This is 1.7 cents less gross profit on each dollar of sales than Luxottica (1.7 66.7 65.0). This difference implies that Luxottica is including a slightly higher markup in its selling prices than Oakley 42 Read Only - This is an older file format. Chan... Record Debit 392,000 8,000 Credit Cash. Sales Discounts (+xR). 400,000 3. Sales returns and allowances and sales discounts should be subtracted from sales revenue to compute net sales: Sales Revenue Sales Returns and Allowances Sales Discounts Net Sales $8,000 2%X($405,000-$5,000) $405,000 5,000) 8,000) 392,000 4. Gross profit and gross profit percentage are calculated as follows: In Dollars 392,000 137,200 254,800 Percent of Net Sales 1000% 35.0 650% Net Sales tcalculated in 3,) Cost of Goods Sold Gross Profit The 65% gross profit percentage indicates that Oakley generates 65 cents of gross profit on each dollar of sales. This is 1.7 cents less gross profit on each dollar of sales than Luxottica (1.7 66.7 65.0). This difference implies that Luxottica is including a slightly higher markup in its selling prices than Oakley 42