McClure Corp. purchased raw materials with a cost of $86,000. Credit terms of 3/10, n/60 apply. If McClure uses the net price method, the purchase should be recorded as
A) $77,400
B) $86,000
C) $83,420
D) $88,580

Question

Quizplus · Accepted Answer

Using the net price method, the purchase is recorded after deducting the discount. The discount is 3% of $86,000, which is $2,580. Therefore, the purchase is recorded at $86,000 - $2,580 = $83,420.