Hardware Restoration had net purchases of $50,000.If Purchases Returns and Allowances are $10,000 and Purchases Discounts are $1,500,what are gross purchases?

Question

Quizplus · Accepted Answer

Gross purchases can be calculated by subtracting purchases returns and allowances and adding purchases discounts to net purchases. 
Gross purchases = net purchases - purchases returns and allowances + purchases discounts 
Gross purchases = $50,000 - $10,000 + $1,500 
Gross purchases = $61,500

Hardware Restoration Had Net Purchases of $50,000