What is net sales vs gross sales?

[Blakelee]

I’m confused about net sales vs gross sales in accounting. Which one shows true revenue, and which one is used for financial reporting?

 

[Benjamin]

Gross sales are the total revenue from all sales before any deductions. Net sales are calculated by subtracting returns, discounts, allowances, and damaged goods from gross sales. Net sales show the actual revenue a business earns and are more accurate for analyzing performance and profitability

 

[Stacy]

Gross sales are total revenue from all sales before any deductions.
Net sales are gross sales minus returns, discounts, and allowances, showing the actual revenue a business earns after adjustments.