Hardware Restoration had net purchases of $55,000.If Purchases Returns and Allowances are $10,000 and Purchases Discounts are $1,500,what are gross purchases?

Question

Quizplus · Accepted Answer

Gross purchases can be calculated as follows:
Net purchases = Gross purchases - (Purchases Returns and Allowances + Purchases Discounts)
$55,000 = Gross purchases - ($10,000 + $1,500)
$55,000 = Gross purchases - $11,500
Gross purchases = $66,500

Hardware Restoration Had Net Purchases of $55,000