Deana, Inc. Deana, Inc. purchased merchandise for $500,000, received credit for purchase returns of $25,000, took purchase discounts of $10,000, and paid transportation in of $20,000.
Refer to Deana, Inc. What is the total cost of merchandise purchased?

Question

Quizplus · Accepted Answer

The total cost of merchandise purchased is the sum of the purchase price, transportation in, and purchase discounts, minus purchase returns.Total cost = $500,000 + $20,000 - $10,000 - $25,000 = $485,000