Prism Co. purchased $2,300 of merchandise on account. The terms of the purchase are 2/15, n/45, FOB shipping point with prepaid shipping costs of $60. If Prism pays within the discount period, what is the amount of the purchase discount?

Question

Quizplus · Accepted Answer

The purchase discount is calculated on the merchandise amount only, not including shipping. The discount is 2% of $2,300, which is $46.00.

Prism Co Purchased $2,300 of Merchandise on Account