Question

In: Accounting

Assuming the periodic inventory method is used for the current year, the following data were taken...

Assuming the periodic inventory method is used for the current year, the following data were taken from the accounting records:

                     Sales                                                      $450,000

Sales returns and allowances                   $15,000

Purchases                                               $250,000

Purchase returns and allowances               $4,000

Discount received                                      $2,000

Freight-in                                                   $1,000

Beginning inventory                                $45,000

Ending inventory                                     $65,000

What was the amount for net purchases?

Select one:

a. $292,000.

b. $246,000.

c. $435,000.

d. $245,000.

Solutions

Expert Solution

Net purchases = Purchases + Freight in - Discount received - Purchase return and allowance

= 250000 + 1000 - 2000 - 4000

= 245000

Correct choice D

ekkarill92 answered 2 years ago
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