7. Assume that ABC company uses a periodic inventory system and has these account balances: purchases 430000; purchases returns and allowances 13,000; purchase discounts 8000; and freight -in 16000. Determine net purchase and cost of goods purchased.
Net Purchase = Purchases - (Purchase Returns and Allowances + Purchase Discounts)
Net Purchase = 430,000 - (13,000 + 8,000)
Net Purchase = 409,000
Cost of Goods Purchased = Net Purchase + Freight-in
Cost of Goods Purchased = 409,000 + 16,000
Cost of Goods Purchased = 425,000