Question: 5) How do purchase returns and allowances and purchase discounts affect gross purchases? A) Both are subtracted from purchases. B) Purchase returns and allowances are

5) How do purchase returns and allowances and purchase discounts affect

5) How do purchase returns and allowances and purchase discounts affect gross purchases? A) Both are subtracted from purchases. B) Purchase returns and allowances are subtracted from purchases; purchase discounts are added to purchases. C) Purchase returns and allowances are added to purchases; purchase discounts are subtracted from purchases. D) Both are added to purchases

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

4) Roadway Company purchases inventory from Fedway Company with the shipping terms FOB destination. This means that: A) Roadway Company owns the goods while they are in transit. B) Legal title passes...

Here's another study guide that I would like to have guidance for the answers that I got wrong. Question 1 0 out of 5 points The following data were extracted from the records of Welmark Company:...

Matinee Company specialized in the sale of IBM compatibles and software packages. The entity had the following transactions with one of the suppliers: Purchases of IBM compatibles, 1,700,000;...

@ Test Bank for Accounting Principles, Eighth Edition The multiple-step form of income statement is easier to read than the single-step form 22 Merchandise inventory is classified as a current asset...

Transportation-in is a. an operating expense. b. part of cost of goods purchased. c. recorded as a purchases expense in a periodic inventory system. d. added to transportation-out as part of the...

For what reason would retailers like The Gap select an accounting period that ends on or near the end of January? a. The company originally started business operations on that date. b. Business...

Remaz Corp. purchased equipment at a cost of $220,000 in January, 2016. As of January 1, 2017, depreciation of $160,000 had been recorded on this asset. Depreciation expense for 2017 is $50,000....

ACCT 3121 n ebo Chapter 8 Lecture Notes boom be De A Valuation of Inventories: A Cost-Basis Approach Inventory Issues Classification - two types Items held for resale (merchandiser) Goods to be used...

I have attached the questions as well as the answers I got.. But the following questions that I was told by my professor that are wrong: 2, 3, 5, 7, 10, 11.. Also please look over the rest to see if...

please help thank you so much Date Account Titles and Explanation Apr.5 Purchases 1.400 Accounts Payable Freight-ln Cash 200 Purchase Returns and Allowances Sales Revenue 1.280 Apr. 122 Purchases...

A nozzle of inner radius 1.00 mm is connected to a hose of inner radius 8.00 mm. The nozzle shoots out water moving at 25.0 m/s? (a) At what speed is the water in the hose moving? (b) What is the...

The price of a one-year zero-coupon bond is $943.396, the price of a two-year zero is $873.439, and the price of a three-year zero-coupon bond is $793.832. The bonds (each) have a face value of...

A toy manufacturer merges with a chemical company. What type of merger is this? A Conglomerate B Horizontal C Vertical merger backwards D Vertical merger forwards

benefits of direct exporting

2. Is it a good idea to give someone who is underperforming a raise? Does it send the wrong signal, insofar as it seems to suggest that poor performance leads to rewards?

4. Of the compensation, benefits, and incentives practices we discussed in, which would you recommend JDV implement, and why?

1. Explain what is meant by ethical behavior.