Eriez Magnetics purchased goods with a purchase price of $10,000 and credit terms of 2/10 net 30.The firm paid for these goods on the 5th day after the date of sale.The firm must pay ________ for the goods.

Question

Quizplus · Accepted Answer

Since Eriez paid on the 5th day after the date of sale, they are still eligible for the 2% discount. The discount is 2% of $10,000, which is $200. Therefore, the amount due is $10,000 - $200 = $9,800.

Eriez Magnetics Purchased Goods with a Purchase Price of $10,000