To calculate the total cost of a merchandise purchase, the invoice account must be adjusted for which of the following?

Question

Quizplus · Accepted Answer

To calculate the total cost of a merchandise purchase, all of the given factors need to be considered. Discounts given by the supplier reduce the cost of the purchase, returns and allowances received also decrease the cost, whereas freight costs and taxes or other costs necessary to make the goods ready for sale increase the cost. Therefore, all of the above factors must be adjusted for an accurate calculation of the total cost of the merchandise purchase.

To Calculate the Total Cost of a Merchandise Purchase, the Invoice