The calculation of Net Purchases does not include:
A)Purchases Returns and Allowances.
B)Purchases Discounts.
C)Purchases.
D)Freight-in.

Question

Quizplus · Accepted Answer

Net Purchases is calculated by subtracting Purchases Returns and Allowances and Purchases Discounts from Purchases. However, Freight-in is added to the Purchases to determine the total cost of the inventory purchased. Therefore, it is not excluded from the calculation of Net Purchases.

The Calculation of Net Purchases Does Not Include