Question

Sanfran Company purchased inventory for . In addition they had purchase returns of and paid freightin of . Sanfran​ Company's net cost of purchases would​ be:

Answer 1

Answer:

The net cost of purchase is $123,000

Explanation:

The computation of the net cost of purchase is shown below:

Purchase cost of inventory           $120,000

Less: Purchase return                   -$9,000

Add: Freight in cost                        $12,000

Net cost of purchases                    $123,000

hence, the net cost of purchase is $123,000

We simply applied the above equation so that the correct value could come

and the same is to be considered