Goods totaling $7,000 purchased February 2 on terms of 2/10, n/30 and on which returns of $1,000 were made on February 10 would be subject to which of the following discounts if paid for on February 12?
A) $120
B) $140
C) $160
D) $20

Question

Quizplus · Accepted Answer

The discount is calculated on the net amount after returns. The net purchase is $6,000 ($7,000 - $1,000). The discount is 2% of $6,000, which is $120.

Goods Totaling $7,000 Purchased February 2 on Terms of 2/10