On June 30 the general ledger of Kisling, Inc., had the following balances:

Purchases $ 42,880 Dr.

Freight In 2,376 Dr.

Purchases Returns and Allowances 2,960 Cr.

Purchases Discounts 2,050 Cr.

Compute the net delivered cost of purchases for Kisling, Inc.

Question

Business

Ashton Montoya

6 July, 06:42

On June 30 the general ledger of Kisling, Inc., had the following balances:

Purchases $ 42,880 Dr.

Freight In 2,376 Dr.

Purchases Returns and Allowances 2,960 Cr.

Purchases Discounts 2,050 Cr.

Compute the net delivered cost of purchases for Kisling, Inc.

+2

Answers (1)

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Izabelle Randolph · Answer 1

Cost of Net Purchases = $ 426166

Explanation:

Kisling, Inc

Purchases $ 42,880 Dr.

Add Freight In 2,376 Dr.

Less Purchases Returns and Allowances 2,960 Cr.

Less Purchases Discounts 2,050 Cr.

Net Purchases = $ 426166

The freight in are the carriage costs that increase the cost of purchases. The purchase returns are the returns which reduce the amount of purchases and the discounts also decrease the cost of net purchases.

This can be calculated using a T account.

Purchases Debit Credit

Purchases Purchases Returns

$ 428800 $ 2960

Freight In Purchase Discounts

$ 2376 $ 2050

Net Purchases 426166

431176 431176

On June 30 the general ledger of Kisling, Inc., had the following balances:Purchases $ 42,880 Dr.Freight In 2,376 Dr.Purchases Returns and Allowances 2,960 Cr.Purchases Discounts 2,050 Cr.Compute the net delivered cost of purchases for Kisling, Inc.

On June 30 the general ledger of Kisling, Inc., had the following balances:

Purchases $ 42,880 Dr.

Freight In 2,376 Dr.

Purchases Returns and Allowances 2,960 Cr.

Purchases Discounts 2,050 Cr.

Compute the net delivered cost of purchases for Kisling, Inc.