Dig, Inc. had the following merchandise transactions in October: $\begin{array}{|l|l|}
\hline\$ 50,000 & \text { Purchases } \
\hline \$ 4,000 & \text { Purchase retuns } \
\hline \$ 1,000 & \text { Purchase discounts } \
\hline\$ 2,000 & \text { Transportation in } \
\hline & \
\hline
\end{array}$
What is the total cost of merchandise purchased for Dig, Inc.?

Question

Dig, Inc. had the following merchandise transactions in October: $\begin{array}{|l|l|}
\hline\$ 50,000 & \text { Purchases } \
\hline \$ 4,000 & \text { Purchase retuns } \
\hline \$ 1,000 & \text { Purchase discounts } \
\hline\$ 2,000 & \text { Transportation in } \
\hline & \
\hline
\end{array}$
 What is the total cost of merchandise purchased for Dig, Inc.?

Quizplus · Accepted Answer

The total cost of merchandise purchased is the sum of purchases, transportation in, and purchase discounts, minus purchase returns. Therefore, the total cost of merchandise purchased for Dig, Inc. is $50,000 + $2,000 - $4,000 - $1,000 = $47,000.

Dig, Inc Had the Following Merchandise Transactions in October What Is the Total Cost of Merchandise Purchased for Dig