Purchases less purchase returns and allowances less purchase discounts is called
A)cost of goods purchased.
B)net purchases.
C)cost of goods sold.
D)net inventory.

Question

Quizplus · Accepted Answer

Net purchases are calculated by taking the total amount of purchases and subtracting both purchase returns and allowances and purchase discounts. This gives the actual cost of purchases made by a business during a period.

Purchases Less Purchase Returns and Allowances Less Purchase Discounts Is