Gbane Company
The following information is from Gbane Company's Year 1 accounting records:
$$\begin{array} { l r }
\text { Purchases } & \$ 218,400 \
\text { Transportation-in } & 13,200 \
\text { Inventory, January 1, Year 1 } & 31,800 \
\text { Inventory, December 31, Year 1 } & 34,560 \
\text { Purchase returns and allowances } & 10,080
\end{array}$$
-Refer to the information provided in the figure Gbane Company.How much will the company report as net purchases for Year 1?

Question

Gbane Company
The following information is from Gbane Company's Year 1 accounting records:
 $$\begin{array} { l r } 
\text { Purchases } & \$ 218,400 \
\text { Transportation-in } & 13,200 \
\text { Inventory, January 1, Year 1 } & 31,800 \
\text { Inventory, December 31, Year 1 } & 34,560 \
\text { Purchase returns and allowances } & 10,080
\end{array}$$
-Refer to the information provided in the figure Gbane Company.How much will the company report as net purchases for Year 1?

Quizplus · Accepted Answer

Net purchases are calculated by adding transportation-in costs to purchases and then subtracting purchase returns and allowances. So, $218,400 (purchases) + $13,200 (transportation-in) - $10,080 (purchase returns and allowances) = $221,520.

Gbane Company the Following Information Is from Gbane Company's Year

Gbane Company
the Following Information Is from Gbane Company's Year