Merchandise with an invoice price of $10,000 is purchased subject to terms of 2/10, n/30, FOB destination.Transportation costs paid by the seller totaled $300.What is the net cost of the merchandise?

Question

Quizplus · Accepted Answer

The net cost of the merchandise is calculated by subtracting the discount from the invoice price and adding any additional costs. With terms of 2/10, n/30, a 2% discount is available if paid within 10 days. Thus, the discount is $10,000 * 2% = $200. The invoice price after discount is $10,000 - $200 = $9,800. Since the transportation costs are paid by the seller (FOB destination), they do not affect the buyer's net cost, making the net cost of the merchandise $9,800.

Merchandise with an Invoice Price of $10,000 Is Purchased Subject