All of the following are deducted from the purchase price of inventory in determining cost of goods sold except:

Question

Quizplus · Accepted Answer

Freight in is added to the purchase price of inventory because it is a cost incurred to get the inventory to the company's location. Purchase returns, discounts, and allowances are deducted from the purchase price to adjust for any returns, discounts received, or allowances granted.

All of the Following Are Deducted from the Purchase Price