Question

Which of the following is not a common adjustment to the purchases account?

• A. Costs incurred getting an item to the merchandiser
• B. Items that arrive damaged or otherwise unacceptable to the merchandiser
• C. Costs of goods sold
• D. Discounts for early payment

Answer 1

The correct option is C

Costs of goods sold

Answer (C): Costs of goods sold

Explanation: Cost of goods sold (COGS) is the expense of obtaining or assembling the items that an organization sells during a period. So, the main expenses recorded for the action are those that are directly attached to the creation of the items, including the expense of work, materials, and assembling or manufacturing overhead.