Net impact of purchase adjustments on cost of sales Steps:

• Add carriage inwards, which increases the cost of goods acquired: +$4,820
• Subtract returns outwards, which reduces net purchases: -$2,750
• Subtract goods for own use, treated as drawings reducing business purchases: -$1,480
• Compute net change: $4,820 -$2,750 - $1,480 =$610 increase Why A is correct:
• Cost of sales formula includes net purchases (purchases + carriage inwards - returns outwards - goods for own use), so this net addition raises cost of sales by $610 Why the others are wrong:
• B: Ignores deductions for returns outwards and goods for own use, overstates increase
• C: Reverses the net sign, treating it as a decrease when carriage inwards dominates
• D: Likely subtracts carriage inwards instead of adding it, yielding wrong decrease Final answer: A