The calculation of net purchases includes all of the following EXCEPT
A) freight in.
B) freight out.
C) purchases discounts.
D) purchases returns.

Question

Quizplus · Accepted Answer

Net purchases calculation includes the cost of goods bought, freight in (shipping costs to receive goods), purchase discounts (reductions in price), and purchase returns (items returned to the supplier). Freight out (shipping costs to deliver goods to customers) is not included in net purchases; it is considered a selling expense.

The Calculation of Net Purchases Includes All of the Following