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16 May, 16:52

g Our company purchases $4,000 worth of merchandise inventory on credit with the terms 2/10, n/30. Transportation costs were an additional $200. Our company returned $300 worth of merchandise. What is the total cost of this merchandise if our company paid the invoice within the discount period

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  1. 16 May, 17:11
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    Answer: $3,826

    Explanation:

    Discount received on terms 2/10 = (Purchase value - Cost of merchandise returned) x Discount Rate

    = $4,000 - $300 x 2%

    = $3,700 x 2%

    = $74

    if the company paid the invoice within the discount period, Then the total cost of this merchandise

    Total cost of merchandise = Value of merchandise purchased - Cost of merchandise returned + Transportation Costs - Amount of discount received

    = $4,000 - $300 + $200 - $74

    = $3,826
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