The following details are provided by Blue Bell Merchandisers. The company uses the periodic inventory system. $$\begin{array} { | l | r | }
\hline \text { Net Sales } & \$ 198,000 \
\hline \text { Purchases } & 92,000 \
\hline \text { Purchases Returns and Allowances } & 1,800 \
\hline \text { Purchases Discounts } & 1,250 \
\hline \text { Freight In } & 1,590 \
\hline \text { Beginning Merchandise Inventory } & 63,000 \
\hline \text { Ending Merchandise Inventory } & 37,000 \
\hline
\end{array}$$ Calculate the amount of net purchases.

Question

The following details are provided by Blue Bell Merchandisers. The company uses the periodic inventory system. $$\begin{array} { | l | r | } 
\hline \text { Net Sales } & \$ 198,000 \
\hline \text { Purchases } & 92,000 \
\hline \text { Purchases Returns and Allowances } & 1,800 \
\hline \text { Purchases Discounts } & 1,250 \
\hline \text { Freight In } & 1,590 \
\hline \text { Beginning Merchandise Inventory } & 63,000 \
\hline \text { Ending Merchandise Inventory } & 37,000 \
\hline
\end{array}$$ Calculate the amount of net purchases.

Quizplus · Accepted Answer

To calculate the net purchases, we need to take into account the purchases, purchases returns and allowances, purchases discounts, and freight in.

Net purchases = Purchases - Purchases Returns and Allowances - Purchases Discounts + Freight In

Substituting the given values, we get:

Net purchases = $92,000 - $1,800 - $1,250 + $1,590 
Net purchases = $88,950

Therefore, the correct answer is option C, which is $88,950.

The Following Details Are Provided by Blue Bell Merchandisers Calculate the Amount of Net Purchases