A firm had purchases of $14,600, freight charges of $870, and purchases returns and allowances of
$1,350 during one month. Its net delivered cost of purchases was:

Question

Quizplus · Accepted Answer

The net delivered cost of purchases is calculated by adding the freight charges to the purchases and then subtracting any purchases returns and allowances. So, $14,600 (purchases) + $870 (freight charges) - $1,350 (returns and allowances) = $14,120.

A Firm Had Purchases of $14,600, Freight Charges of $870