Rex Beauty Supply has ordered $5,000 worth of merchandise from Carrie's Beauty Supply,Inc.The invoice to Rex has discount terms of 2/10,net/30.Rex writes a check within ten days for

Question

Quizplus · Accepted Answer

The discount terms of 2/10, net/30 means that if Rex pays within 10 days, they can take a 2% discount on the $5,000 invoice. Otherwise, they must pay the full amount within 30 days.

To calculate the amount of the discount, we multiply the invoice amount by the discount rate:

$5,000 x 0.02 = $100

So if Rex pays within 10 days, they can subtract $100 from the invoice amount, making their total $4,900.

Therefore, the best choice is D) $4,900.

Rex Beauty Supply Has Ordered $5,000 Worth of Merchandise from Carrie's