Net Purchases are:
A)Total Purchases + Purchases Discounts + Purchases Returns and Allowances.
B)Total Purchases + Purchases Discounts - Purchases Returns and Allowances.
C)Total Purchases - Purchases Discounts - Purchases Returns and Allowances.
D)None of these are correct.

Question

Quizplus · Accepted Answer

Net Purchases are calculated by subtracting any discounts and returns/allowances from the total purchases. Therefore, the correct formula is Total Purchases - Purchases Discounts - Purchases Returns and Allowances, which is option C.

Net Purchases Are