If a firm uses the periodic inventory method,which of the following is subtracted from Purchases to arrive at Net purchases?
A)Cost of goods available for sale
B)Ending inventory
C)Purchase discounts and Purchase returns and allowances
D)Beginning inventory

Question

Quizplus · Accepted Answer

Purchase discounts and Purchase returns and allowances are subtracted from Purchases to arrive at Net purchases under the periodic inventory method. These reductions help arrive at the actual cost of goods purchased during the period. Beginning inventory and Ending inventory are used to calculate the cost of goods sold. Cost of goods available for sale is the sum of beginning inventory and net purchases.

If a Firm Uses the Periodic Inventory Method,which of the Following