Inventory costing $3,000 is sold for $4,000 on terms 2/10,n/30.If the buyer pays within the discount period,what amount will be reported on the income statement as net sales?
A) $3,920
B) $4,000
C) $1,000
D) $3,200

Question

Quizplus · Accepted Answer

The buyer will receive a 2% discount if they pay within 10 days. The amount of the discount is $4,000 x 2% = $80. The net sales will be $4,000 - $80 = $3,920.

Inventory Costing $3,000 Is Sold for $4,000 on Terms 2/10,n/30