Sofia's Sodas purchased merchandise inventory with an invoice price of $2,000 and credit terms of 2/10, n/30.What is the net cost of the goods if Sofia's Sodas pays within the discount period?

Question

Quizplus · Accepted Answer

The net cost of the goods can be found using the formula:
Net Cost = Invoice Price - (Invoice Price x Discount %)
Discount % = 2/100 = 0.02
Net Cost = $2,000 - ($2,000 x 0.02)
Net Cost = $1,960
Therefore, option B is the best choice as it is the correct net cost of the goods if Sofia's Sodas pays within the discount period.

Sofia's Sodas Purchased Merchandise Inventory with an Invoice Price of $2,000