Net purchases is equal to
A) Purchases minus Purchases Returns and Allowances plus Purchases Discounts.
B) Purchases plus Purchases Returns and Allowances plus Purchases Discounts.
C) Purchases minus Purchases Returns and Allowances minus Purchases Discounts.
D) Purchases plus Freight In minus Purchases Discounts.
E) Purchases minus Freight In plus Purchases Returns and Allowances.

Question

Quizplus · Accepted Answer

Net purchases are calculated by subtracting both purchases returns and allowances and purchases discounts from the total purchases. This reflects the actual cost of purchases after accounting for returns, allowances, and discounts received.

Net Purchases Is Equal to