Question

A company using the perpetual inventory system purchased inventory worth $ 22 comma 000 on account with terms of 2​/10, ​n/30. Defective inventory of $ 1 comma 000 was returned two days​ later, and the accounts were appropriately adjusted. If the invoice is paid 10 days after the invoice​ date, the amount of the purchase discount that would be available to the company is​ ________

Answer 1

Discount = $420

Step-by-step explanation:

Inventory purchased = $22000

Defective inventory = $ 1000

to find out

amount of the purchase discount that would be available to the company is​

solution

we know Inventory purchased = $22000

and return is $1000

so Net Purchases = $22000 - $1000

Net Purchases = $21000

so

discount claim for $21000 is 2%

Discount = 2% of $21000

Discount = $420