If a company uses the periodic inventory method,which of the following is subtracted from Purchases to arrive at Net purchases?
A) Beginning inventory
B) Ending inventory
C) Purchase discounts and Purchase returns and allowances
D) Cost of goods available for sale

Question

Quizplus · Accepted Answer

Purchase discounts and Purchase returns and allowances are subtracted from Purchases to arrive at Net purchases. Beginning inventory and Ending inventory are used to calculate Cost of goods sold, and Cost of goods available for sale is the sum of Beginning inventory and Net purchases.

If a Company Uses the Periodic Inventory Method,which of the Following