HomeworkLib
Question

Discount Dollar uses a perpetual inventory system. Suppose Discount Dollar’s Purchases totaled $68,000, Purchase Returns totaled...

Discount Dollar uses a perpetual inventory system. Suppose Discount Dollar’s Purchases totaled $68,000, Purchase Returns totaled $5,200, Purchase Allowances totaled $1,500, Purchase Discounts totaled $2,800, and Freight In totaled $5,000. What is Discount Dollar’s net cost of inventory purchases?

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Discount Dollars net cost of inventory purchases S63,500 Working Notes: Caluclation of Net cost of Inventory Purchases: Amount Amount Particulars Purchases Less: Purchase Return Purchase Allowen Purchase Discounts $68,000 $ 5,200 $ 1,500 ces $ 2,800 9,500 $58,500 $ 5,000 $63,500 Add: Freight Net Cost of Inventory Purchase

0 0
Add a comment
Know the answer?
Add Answer to:
Discount Dollar uses a perpetual inventory system. Suppose Discount Dollar’s Purchases totaled $68,000, Purchase Returns totaled...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Discount Dollar uses a perpetual inventory system. Suppose Discount Dollar’s Purchases totaled $68,000, Purchase Returns totaled...

    Discount Dollar uses a perpetual inventory system. Suppose Discount Dollar’s Purchases totaled $68,000, Purchase Returns totaled $5,200, Purchase Allowances totaled $1,500, Purchase Discounts totaled $2,800, and Freight In totaled $5,000. What is Discount Dollar’s net cost of inventory purchases?

  • Flounder Corp. uses a periodic inventory system and reports the following information: sales $1,840,000; sales returns...

    Flounder Corp. uses a periodic inventory system and reports the following information: sales $1,840,000; sales returns and allowances $125,000; sales discounts $29,000; purchases $879,000; purchase returns and allowances $12,000; purchase discounts $15,000; freight in $14,000; freight out $41,000; beginning inventory $99,000; and ending inventory $78,000. Assuming Flounder uses a multiple-step income statement Calculate net sales Net sales $ Calculate net purchases. Net purchases $ Calculate cost of goods purchased. Cost of goods purchased 5 Calculate cost of goods sold. Cost...

  • Assume that Carla Vista Co. uses a periodic inventory system and has these account balances: Purchases...

    Assume that Carla Vista Co. uses a periodic inventory system and has these account balances: Purchases $358,200; Purchase Returns and Allowances $11,800; Purchase Discounts $7.200; and Freight-in $15,400. Determine net purchases and

  • Assume that Tract Company uses a periodic inventory system and has these account balances: Purchases $484,000;...

    Assume that Tract Company uses a periodic inventory system and has these account balances: Purchases $484,000; Purchase Returns and Allowances $18,000; Purchase Discounts $9,000; Freight-In $16,000, Beginning Inventory $60,000, Net Sales $621,000, and Ending Inventory $90,000. Instructions (no color required): A. Determine Net Purchases and Cost of Goods Purchased. B. Determine Cost of Goods Sold and Gross Profit.

  • If a company uses the perpetual inventory system, purchases, purchase returns, sales, and sales returns all...

    If a company uses the perpetual inventory system, purchases, purchase returns, sales, and sales returns all result in an immediate debit or credit to the inventory account. Question 2 options: True False

  • 5) A purchase return or allowance under a perpetual inventory system is credited to: A) Accounts...

    5) A purchase return or allowance under a perpetual inventory system is credited to: A) Accounts Payable B) Purchase Returns and Allowances C) Inventory D) Purchases 6) Which of the following accounts is not a contra account? A. Inventory B. Accumulated Amortization C. Sales Returns and Allowances D. Sales Discounts 7) To calculate the gross margin percentage, A. Divide net sales by net income B. Divide current assets by current liabilities C. Divide total liabilities by total assets D. Divide...

  • 2. Give a detailed example of the recording of purchases under a perpetual inventory system including...

    2. Give a detailed example of the recording of purchases under a perpetual inventory system including returns, allowances and discounts. 3. Give a detailed example of the recording sales revenues under a perpetual inventory system including returns, allowances and discounts. 4. Give a detailed example of the recording of purchases under a periodic inventory system including returns, allowances and discounts. 5. Give a detailed example of the recording sales revenues under a periodic inventory system including returns, allowances and discounts.

  • PART B: COMPREHENSIVE QUESTIONS SHOW 7. Durable Equipment Company uses the periodic inventory system. Durable reported...

    PART B: COMPREHENSIVE QUESTIONS SHOW 7. Durable Equipment Company uses the periodic inventory system. Durable reported the following selected amounts at lune 30, 2019 (the beginning inventory balance is also provides (25 Points) Merchandise Inventory, July 1, 2018 Merchandise Inventory, June 30, 2019 Purchases Purchase Discounts Purchase Returns and Allowances Freight In Net Sales Revenue Delivery Expense Sales Salaries Expense Common Stock Retained Earnings AED 22,000 19,000 96,000 5,000 8,500 3,200 212.400 1,400 44,200 45,000 24,500 T Compute the following:...

  • PART B: COMPREHENSIVE QUESTIONS: SHOW WURK PORTA 7. Durable Equipment Company uses the periodie inventory system....

    PART B: COMPREHENSIVE QUESTIONS: SHOW WURK PORTA 7. Durable Equipment Company uses the periodie inventory system. Durable reported the following selected amounts at June 30, 2019 (the beginning inventory balance is also provided (25 Points) AED Merchandise Inventory, July 1, 2018 Merchandise Inventory, June 30, 2019 Purchases Purchase Discounts Purchase Returns and Allowances Freight In Net Sales Revenue Delivery Expense Sales Salaries Expense Common Stock Retained Earnings 22,000 19,000 96.000 5,000 8,500 3,200 212.400 1.400 44,200 45,000 24,500 Compute the...

  • 7. The following details are provided by Western Wear Merchandisers. The company uses the periodic inventory...

    7. The following details are provided by Western Wear Merchandisers. The company uses the periodic inventory system. (20 Points) AED Net Sales Revenue 198,000 Purchases 94,000 Purchase Returns and Allowances 2,000 Purchase Discounts 1,500 Freight In 1,700 Beginning Merchandise Inventory 63,000 Ending Merchandise Inventory 37,000 Calculate the amount of net purchases. AED

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT