Question

During the year, a firm purchased $256,900 of merchandise and paid freight charges of $36,870. If the total purchases returns and allowances were $13,690 and purchase discounts were $9,160 for the year, what is the net delivered cost of purchases?

Answer 1

The net delivered cost of purchases is $270920

Explanation:

The given data in the question is as follows:

purchases = $256900, freight charges paid = $36870, purchase returns and allowances = $13690, purchase discounts = $9160

The net delivered cost of purchases is calculated as follows:

Purchases plus frieght charges minus purchase returns and allowances and minus purchase discounts

Purchases = $256900

add: freight charges paid = $36870

less: purchase returns and allowances = $13690

less: purchase discounts = $9160

net delivered cost = $270920

Therefore, the correct answer is $270920