Ask Question
20 July, 05:04

Assume that Oriole Company uses a periodic inventory system and has these account balances: Purchases $355,300; Purchase Returns and Allowances $10,200; Purchase Discounts $9,000; and Freight-in $16,800. Determine net purchases and cost of goods purchased.

+4
Answers (1)
  1. 20 July, 06:33
    0
    The answer is:

    Net purchases = $336,100

    Cost of goods purchased = $352,900

    Explanation:

    Net purchases equals purchases minus purchase returns and allowances minus purchase discount.

    Purchases = $355,300

    Purchase returns = $10,200

    Purchase discount = $9,000

    Therefore, net purchase is:

    $355,300 - $10,200 - $9,000

    = $336,100

    Cost of goods purchased equals net purchase plus freight in.

    Freight in = $16,800

    So cost of goods purchased is:

    $336,100 + $16,800

    =$352,900
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Assume that Oriole Company uses a periodic inventory system and has these account balances: Purchases $355,300; Purchase Returns and ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers