For (a) through (d), identify the items designated by X and Y. a. Purchases 2 (X 1 Y) 5 Net purchases.

For (a) through (d), identify the items designated by X and Y.

a. Purchases 2 (X 1 Y) 5 Net purchases.

b. Net purchases 1 X 5 Cost of merchandise purchased.

c. Merchandise inventory (beginning) 1 Cost of merchandise purchased 5 X.

d. Merchandise available for sale 2 X 5 Cost of merchandise sold before estimated returns.

e. Cost of merchandise sold before estimated returns 2 X = Cost of merchandise sold.

Answer:

a. Purchases discounts, purchases returns and allowances

b. Freight in

c. Merchandise available for sale

d. Merchandise inventory (ending)

e. Increase in estimated returns inventory