Purchases differ from delivered cost of purchases by the amount of
A) Purchases Returns and Allowances, Purchases Discounts, and Freight In.
B) ending merchandise inventory.
C) the cost of goods available for sale.
D) the cost of goods sold.
E) beginning inventory.

Question

Quizplus · Accepted Answer

Purchases returns and allowances, purchases discounts, and freight in are all deductions from purchases which can result in a difference between the initial purchase amount and the final delivered cost of purchases.

Purchases Differ from Delivered Cost of Purchases by the Amount