Alison's dress shop buys dresses from McGuire Manufacturing. Alison purchased dresses from McGuire on July 17, and received an invoice with a list price amount of $6,000 and payment terms of 2/10, n/30. Alison uses the net method to record purchases. Alison should record the purchase at:

Question

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Alison should record the purchase at $5,880. This is calculated by taking the list price amount of $6,000 and applying the 2% discount for paying within 10 days, which equals $120 ($6,000 x 0.02). The net amount due after the discount is subtracted is $5,880 ($6,000 - $120).

Alison's Dress Shop Buys Dresses from McGuire Manufacturing