Goods totaling $56,000 purchased August 2 on terms of 2/10,n/30 and on which returns of $2,000 were made on August 10 would be subject to which of the following discounts if paid for on August 12?
A) $1,080
B) $1,120
C) $1,160
D) $40

Question

Quizplus · Accepted Answer

The discount is 2% of the net amount after returns. The net amount is $56,000 - $2,000 = $54,000. The discount is 2% of $54,000, which is $1,080.

Goods Totaling $56,000 Purchased August 2 on Terms of 2/10,n/30