<P> In bookkeeping, accounting, and finance, Net sales are operating revenues earned by a company for selling its products or rendering its services . Also referred to as revenue, they are reported directly on the income statement as Sales or Net sales . </P> <P> In financial ratios that use income statement sales values, "sales" refers to net sales, not gross sales . Sales are the unique transactions that occur in professional selling or during marketing initiatives . </P>

Where does sales discounts go on the income statement