Eli Company
Eli Company sells novelty items and offers terms of 1/10, n/30 to credit customers. One customer, Faulkner, Inc., purchased 100 Sweet-16 party decor packs with a list price of $20 each on March 5, 2013.
-Refer to the information provided for Gbane Company. How much will the company report as net purchases for 2013?

Question

Quizplus · Accepted Answer

To calculate net purchases, we need to subtract any purchase returns, purchase discounts, and freight-in from purchases.

Purchase price for 100 Sweet-16 party decor packs: 
100 * $20 = $2,000

Purchase discount: 
1% of $2,000 = $20

Net purchase: 
$2,000 - $20 = $1,980

Since there is no information about purchase returns or freight-in, we can assume they are not applicable.

Now, to find the total net purchases for 2013, we need to add up all the net purchases made by the company throughout the year. Since there is no other information provided about Eli Company's purchases, we can only use the net purchase amount from Faulkner, Inc.:

Total net purchases = $1,980

Therefore, the correct answer is choice A) $221,520.

Eli Company Eli Company Sells Novelty Items and Offers Terms of 1/10