Boise Cascade Company purchases $5,000 of merchandise from a vender with credit terms of 2/10,n/30.Assuming that Boise Cascade pays within the discount period,the total cost of the inventory is ________.

Question

Quizplus · Accepted Answer

If Boise Cascade pays within the discount period, they can take 2% off of the purchase price. 
2% of $5,000 = $100 discount 
So the total cost of the inventory would be: 
$5,000 purchase price - $100 discount = $4,900.

Boise Cascade Company Purchases $5,000 of Merchandise from a Vender