For the current fiscal year, Purchases were $187,000, Purchase Returns and Allowances were
$4,200 and Freight In was $10,500. If the beginning merchandise inventory was $98,000 and the ending merchandise inventory was $103,000, the Net Delivered Cost of Purchases is:
A)$172,300
B)$193,300
C)$187,000
D)$201,700

Question

Quizplus · Accepted Answer

The Net Delivered Cost of Purchases is calculated by adding the Purchases to Freight In and then subtracting the Purchase Returns and Allowances. So, $187,000 + $10,500 - $4,200 = $193,300.

For the Current Fiscal Year, Purchases Were $187,000, Purchase Returns