Your firm purchases $100,000 worth of goods from its supplier on terms of 2/20 net 60.How much more does your firm pay if it chooses not to take advantage of the trade discount?

Question

Quizplus · Accepted Answer

The trade discount is 2% of $100,000, which is $2,000. If the firm does not take advantage of the discount, it pays $2,000 more than if it had taken the discount.

Your Firm Purchases $100,000 Worth of Goods from Its Supplier