Answer and Explanation:
A)Purchase Returned and
Allowance – Deducted
(B) Purchase Discounts – Deducted (C) Freight – in – Added
The cost of goods purchased is the net cost of merchandise purchased. The calculate cost of goods purchased, we add freight to the initial purchase cost and then subtract Purchase returns and allowances and Purchase discounts. Cost of goods purchased is set against gross sales to determine profit.
