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24 May, 01:07

Assume that Sheridan Company uses a periodic inventory system and has these account balances: Purchases $392,500; Purchase Returns and Allowances $11,900; Purchase Discounts $6,200; and Freight-in $17,100. Determine net purchases and cost of goods purchased.

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  1. 24 May, 02:50
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    net purchases = $374,400

    cost of goods purchased = $391,500

    Explanation:

    net purchases = total purchases - purchase returns and allowances - purchase discounts = $392,500 - $11,900 - $6,200 = $374,400

    cost of goods purchased = net purchases + freight in costs = $374,400 + $17,100 = $391,500
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