Answer to Question #133428 in Accounting for Neba

Question

In the following questions, identify the items that designated by 'X'
A) purchases - (X+X) = net purchases
B) net purchases + X = cost of merchandise purchased
C) X + cost of merchandise purchased = merchandise available for sale
D) merchandise available for sale - X = cost of merchandise sold

Answer 1

A-purchases - (purchase return & allowance purchase discount)= Net purchases

B-Net purchases + Freight in = cost of merchandise purchased

C-Merchandise inventory(beginning+ cost of merchandise purchased= merchandise available for sale

D-merchandise available for sale-merchandise inventory(closing) =cost of merchandise sold