When using the periodic inventory system, which of the following is not a step in determining cost of goods purchased?
A)Add freight-in
B)Subtract purchase returns and allowances
C)Subtract cost of ending inventory
D)All of these are necessary steps.

Question

Quizplus · Accepted Answer

In the periodic inventory system, the cost of ending inventory is not subtracted when determining the cost of goods purchased. Instead, it is used to calculate the cost of goods sold at the end of the period.

When Using the Periodic Inventory System, Which of the Following