Merchandise costing $5,600 with terms of 1/10,n/30,with transportation costs of $320 included on the invoice (not included in the $5,600)is sold on account.If the bill is paid within ten days,the amount of the purchase discount is

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The purchase discount is calculated on the merchandise cost only, not including transportation. The discount is 1% of $5,600, which is $56.00.

Merchandise Costing $5,600 with Terms of 1/10,n/30,with Transportation Costs of $320