1. Net purchases +? = cost of goods purchased
2. Net purchases = ? + ? = purchases
1. Net purchases +? = cost of goods purchased 2. Net purchases = ? + ? = purchases
solution in finding the purchases
Yes purchase returns are deducted from purchases to calculate the net amount of purchases and that's why included in cost of sales.
you find the formula... then you calculate it. Its that simple.
purchases+purchases discounts+sales returns and allowances+frieght charges+ begining inventory
You would have a very tough time, because that isn't the formula to calculate work. (distance) divided by (time) is the formula to calculate speed. The formula to calculate work is: (force) multiplied by (distance).
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Formula to calculate the ratio
Purchase Return and Allowance- Discount From purchase = Net Purchase
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