A retailer purchases merchandise with a catalog list price of $15,000. The retailer receives a 15% trade discount and credit terms of 2/10, n/30. How much cash will be needed to pay this invoice within the discount period?

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The retailer receives a 15% trade discount, reducing the price to $12,750 ($15,000 - 15% of $15,000). Paying within the discount period gives an additional 2% discount, reducing the amount to $12,495 ($12,750 - 2% of $12,750).

A Retailer Purchases Merchandise with a Catalog List Price of $15,000