question archive A company uses the periodic method and has the following account balances
A company uses the periodic method and has the following account balances
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A company uses the periodic method and has the following account balances.
Purchase returns = $17,000
Beginning inventory = $4,000
Purchases = $193,000
Freight-In = $11,000
Accounts payable = $23,000
What is the company's net purchases?
a. $183,000
b. $187,000
c. $191,000
d. $210,000
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Correct answer: Option b) $87,000.
Explanation:
- Net purchases = Gross purchases - Purchase returns + Freight-in
- Net purchases = $193,000 - $17,000 + $11,000
- Net purchases = $187,000
