The amount recorded for merchandise inventory purchases includes all of the following except:
A)Purchase discounts.
B)Returns and allowances.
C)Freight costs paid by the buyer.
D)Freight costs paid by the seller.
E)Trade discounts.

Question

Quizplus · Accepted Answer

Freight costs paid by the seller are not included in the amount recorded for merchandise inventory purchases because they are not an expense incurred by the buyer. The other options listed are all included in the amount recorded for merchandise inventory purchases.

The Amount Recorded for Merchandise Inventory Purchases Includes All of the Following