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13 March, 14:48

Assume that Pharoah Company uses a periodic inventory system and has these account balances: Purchases $351,600; Purchase Returns and Allowances $12,300; Purchase Discounts $6,300; and Freight-in $17,000. Determine net purchases and cost of goods purchased.

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  1. 13 March, 16:15
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    Net purchase = $333,000

    cost of goods purchased = $350,000

    Explanation:

    net purchases = purchases-returns-discounts

    = 351,600 - 12,300 - 6,300

    cost of goods purchased = net purchases + freight

    = 333,000+17000

    =$350,000
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