Question

On June 30 the general ledger of Beverly Hills Clothiers, a clothing store, showed a balance of $63,895 in the Purchases account, a balance of $2,975 in the Freight In account, and a balance of $4,280 in the Purchases Returns and Allowances account. What was the delivered cost of the purchases made during June?

Answer 1

$62,590

Step-by-step explanation:

The computation of the delivered cost of the purchases made is shown below:

= Balance in purchase account + freight in charges - purchase return and allowance

= $63,895 + $2,975 - $4,280

= $62,590

We simply added the freight in charges and deduct the purchase return and allowances to the purchase balance so that the correct amount can come