When using the periodic inventory system, which of the following generally would not be separately accounted for in the computation of cost of goods sold?
A)Trade discounts applicable to purchases during the period
B)Cash (purchase) discounts taken during the period
C)Purchase returns and allowances of merchandise during the period
D)Cost of transportation-in for merchandise purchased during the period

Question

Quizplus · Accepted Answer

Trade discounts applicable to purchases during the period are generally not separately accounted for in the computation of cost of goods sold under the periodic inventory system. This is because trade discounts are deducted from the purchase price before the cost of goods sold is calculated.

When Using the Periodic Inventory System, Which of the Following