Merchandise costing $3,000 is sold for $4,000 on terms 2/10,n/30.If the buyer pays within the discount period,what amount will be reported on the income statement as net sales?

Question

Quizplus · Accepted Answer

If the buyer pays within the discount period, they will receive a 2% discount on the total cost of the merchandise. 
Discount = $4,000 x 2% = $80 
Net sales = Total sales - Discount 
Net sales = $4,000 - $80 = $3,920

Merchandise Costing $3,000 Is Sold for $4,000 on Terms 2/10,n/30