A company purchased $6,000 of merchandise.Transportation costs were an additional $100.The company returned $250 of the merchandise and then paid the invoice within the 2% discount period.What is the total amount of cash paid?

Question

Quizplus · Accepted Answer

The total amount of merchandise purchased including transportation costs is $6,100 ($6,000 + $100). After returning $250 worth of merchandise, the new total is $5,850 ($6,100 - $250). If the company pays within the 2% discount period, they will receive a discount of $117 ($5,850 x 0.02). Therefore, the total amount of cash paid will be $5,733 ($5,850 - $117).

A Company Purchased $6,000 of Merchandise