Ask Question
21 December, 21:31

Glenn Company purchased merchandise inventory with an invoice price of $9,000 and credit terms of 2/10, n/30. What is the net cost of the goods if Glenn Company pays within the discount period? a. $8,100 b. $8,280 c. $8,820 d. $9,000

+4
Answers (1)
  1. 21 December, 23:15
    0
    The correct answer is B

    Explanation:

    The net cost of goods is computed as if the paid in the discounting period:

    Net Cost of goods = Inventory cost - (Inventory cost * Discounting percentage)

    where

    Inventory cost is $9,000

    Discounting percentage is 2%

    Putting the values above:

    Net Cost of goods = $9,000 - ($9,000 * 2%)

    Net Cost of goods = $9,000 - $180

    Net Cost of goods = $8,280

    Therefore, the amount of $8,280 will be paid by the company if paid within the discounting period and avail the discount of $180.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Glenn Company purchased merchandise inventory with an invoice price of $9,000 and credit terms of 2/10, n/30. What is the net cost of the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers