A firm had purchases of $16,200, freight charges of $300, and purchases returns and allowances of $1,100 during one month. Its net delivered cost of purchases was:
A. $14,800. B. $17,600. C. $16,200. D. $15,400.

Question

A firm had purchases of $16,200, freight charges of $300, and purchases returns and allowances of $1,100 during one month. Its net delivered cost of purchases was:
A. $14,800.   B. $17,600.   C. $16,200.   D. $15,400.

anonymous · Answer

It looks like, you had a purchase of $16,200 + $300 in debits. Then credits of $1,100. Therefore, (16,200+300) - 1,100 = $15,400

anonymous · Answer

The Merchandise Inventory account is debited when goods are purchased for resale and credited when goods are sold and delivered to customers.

TRUE OR FALSE?

anonymous · Answer

Sounds like it would be true. Debit = "To subtract" and Credit = "To add"