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 freight-in for merchandise purchased during the period

Question

Quizplus · Accepted Answer

Trade discounts applicable to purchases during the period are typically included in the cost of the purchased merchandise and therefore are not separately accounted for in the computation of cost of goods sold. Cash discounts taken, purchase returns and allowances, and cost of freight-in are all separately accounted for in the computation of cost of goods sold under the periodic inventory system.

When Using the Periodic Inventory System, Which of the Following