Question

a company purchases merchandise for $29,500. 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?multiple choice$2,950.$29,500.$9,350.$28,910.$20,650.

Answer 1

The net cost of the merchandise after taking a 2% discount on a $29,500 purchase within the discount period is $28,910.

Step-by-step explanation:

The question asks for the net cost of merchandise given that a company purchases merchandise for $29,500 and has the option to take a discount under credit terms of 2/10, n/30. This means that if the company pays within 10 days, they are entitled to a 2% discount on the purchase. To calculate the discount, we multiply the total cost of the merchandise by the discount rate of 2%, resulting in $29,500 × 0.02 = $590. The net cost will then be the original cost minus the discount: $29,500 - $590 = $28,910.