Question

A company purchased $3,100 worth of merchandise. Transportation costs were an additional $270. The company returned $215 worth of merchandise and then paid the invoice within the 1% cash discount period. The total cost of this merchandise is:

Answer 1

I believe your answer is 3186.55
I hope this helped!

Answer 2

The initial purchase of merchandise was 3,100 dollars.

Transportation cost occurred was 270 dollars.

Then the company returned merchandise of 215 dollars.

The invoice got paid with a discount of 1% cash discount.

The discount is applied on invoice of initially purchased merchandise, net returned merchandise. It does not affect transportation charges.

So, Total Cost = (100% - discount) x (Initial purchase - any return) + (transportation charges)

Total cost = (100% - 1%) x (3,100 - 215) + 270

Total cost = (99%) x (2,885) + 270

Total cost = 0.99 x 2885 + 270

Total cost = 2856.15 + 270 = 3126.15

Hence, total costs of this merchandise are 3,126.15 dollars.