Classic Car Parts, Inc. uses a periodic inventory system. From the following details, calculate net purchases
Beginning merchandise inventory $2,000
Ending merchandise inventory 2,300
Purchases 21,000
Purchase Discounts 1,000
Purchase Returns and Allowances 1,300
Freight In 4,400
A) $23,300
B) $18,700
C) $20,700
D) $20,000
B .Calculation of net purchases:
Purchases $21,000
Less: Purchase Returns and Allowances 1,300
Less: Purchase Discounts 1,000
Net Purchases $18,700
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