Howard Company purchased merchandise inventory with an invoice price of $7000 and credit terms of 2/10 n/30. What is the net cost of the goods if Howard Company pays within the discount period?

Question

Quizplus · Accepted Answer

The net cost of the goods if Howard Company pays within the discount period is calculated by applying the discount to the invoice price: $7000 - ($7000 * 2%) = $7000 - $140 = $6860.

Howard Company Purchased Merchandise Inventory with an Invoice Price of $7000