The following pertains to periodic inventory: On a retailer's income statement,which would NOT be found under the heading of Cost of sales?
A)Purchases
B)Purchase returns and allowances
C)Supplies
D)Freight in

Question

Quizplus · Accepted Answer

Supplies would not be found under the heading of Cost of sales as they are not directly related to the purchase and sale of goods. Purchases, purchase returns and allowances, and freight in are all directly related to the cost of goods sold and would typically be found under the heading of Cost of sales on a retailer's income statement.

The Following Pertains to Periodic Inventory: on a Retailer's Income