The following accounts are included in the ledger of Bainbridge Company:
Advertising expense
Freight-in
Inventory
Purchases
Purchase returns and allowances
Sales revenue
Sales returns and allowances
Which of the accounts would be included in calculating cost of goods sold?

Purchase Returns

Goods returned by the purchaser to the supplier due to defects, excess supply, or other reasons, often resulting in a refund or credit.

Cost of Goods Sold

The direct financial costs required for the manufacture of a company’s products, involving materials and labor expenses.