What is the amount of the discount to be taken by a company that purchases inventory for $10,000 with terms 2/10,n/30,returns $2,000 of the inventory purchased,receives an allowance for defective merchandise of $100,and pays the amount due within the discount period?
A)$200
B)$158
C)$160
D)$198

Question

Quizplus · Accepted Answer

The net purchase amount eligible for discount is $10,000 - $2,000 (returns) - $100 (allowance) = $7,900. The discount is 2% of $7,900, which is $158.

What Is the Amount of the Discount to Be Taken