Sanfran Company purchased inventory for $100,000.In addition they had purchase returns of $7,000 and paid freight-in of $8,000.Sanfran Company's net cost of purchases would be:

Name: Sanfran Company purchased inventory for $100,000.In addition they had purchase returns of $7,000 and paid freight-in of $8,000.Sanfran Company's net cost of purchases would be:
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Question

Quizplus · Accepted Answer

The net cost of purchases is calculated as the purchase cost minus purchase returns plus freight-in: $100,000 - $7,000 + $8,000 = $101,000.

Sanfran Company Purchased Inventory for $100,000