Willetta Company purchases inventory for $10,000 with terms 3/10,n/30.It then returns $2,000 of the inventory purchased to the supplier and also receives an allowance for defective inventory of $100.The company pays the amount due within the discount period.What is the amount of the discount that will be taken?

Question

Quizplus · Accepted Answer

Purchase discount = (Purchase − Purchase return − Purchase allowance)× Discount percentage
= ($10,000 − $2,000 − $100)× 0.03 = $237

Willetta Company Purchases Inventory for $10,000 with Terms 3/10,n/30