A company using the periodic inventory system has the following account balances: Merchandise Inventory at the beginning of the year,$3,600;Transportation-In,$650;Purchases,$10,700;Purchase Returns and Allowances,$1,950;Purchase Discounts,$330.The cost of goods purchased is equal to
A)$12,670.
B)$9,070.
C)$8,420.
D)$17,230.

Question

Quizplus · Accepted Answer

To calculate the cost of goods purchased, we need to subtract the purchase returns and allowances and purchase discounts from purchases: 
$10,700 - $1,950 - $330 = $9,070.

A Company Using the Periodic Inventory System Has the Following