Purchases returns and allowances and purchases discounts reduce the cost of goods sold.

Name: Purchases returns and allowances and purchases discounts reduce the cost of goods sold.
Brand: Quizplus
Rating: 4.8 (54 reviews)

Question

Quizplus · Accepted Answer

Purchases returns and allowances and purchases discounts are both deductions from the gross amount of purchases. They reduce the cost of goods sold because they represent amounts that the company does not have to pay for the goods purchased.

Purchases Returns and Allowances and Purchases Discounts Reduce the Cost