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17 August, 10:34

A company purchases merchandise with a catalog price of $24,500. The company receives a 35% trade discount from the seller. The seller also offers credit terms of 2/10, n/30. Assuming no returns were made and that payment was made within the discount period, what is the net cost of the merchandise

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  1. 17 August, 14:20
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    The net cost of the merchandise is $15,697.5

    Explanation:

    The 2/10, n / 30 means that if payment is made within 30 days there will a discount and there will also be an additional discount if payment made within 10 days in this case the 30 day discount is 35% and 2 % additional discount if paid within 10 days

    Ten days

    24500*0.02 = 490

    24500-490 = 24 010

    30 days

    24101*0.35 = 8403.5

    24101 - 8403.5 = $15697.5
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