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A company using the periodic inventory system has the following account balances: Merchandise Inventory at the beginning of the year, $4,225; Freight In, $467; Purchases, $14,439; Purchases Returns and Allowances, $2,701; Purchases Discounts, $319. The cost of merchandise purchased is equal to

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jepessoa

Answer:

$11,886

Explanation:

the cost of merchandise purchased = purchases (goods purchased by the company) + freight in costs (cost of transporting purchased goods to the company) - purchase returns and allowances (goods returned to suppliers) - purchase discounts (discounts handed out by suppliers) = $14,439 + $467 - $2,701 - $319 = $11,886

The initial inventory is not included in the calculation since it was purchased during previous periods.