Davies Company purchased merchandise inventory with an invoice price of $15,000 and credit terms of 2/10, n/30.What is the net cost of the goods if Davies Company pays within the discount period?
A)$15,000
B)$14,760
C)$14,700

Question

Quizplus · Accepted Answer

The discount is 2% of $15,000, which is $300. Therefore, the net cost if paid within the discount period is $15,000 - $300 = $14,700.

Davies Company Purchased Merchandise Inventory with an Invoice Price of $15,000