Merchandise with an invoice price of $6,000 is purchased subject to terms of 2/10, n/30, FOB destination. Transportation costs paid by the seller totaled $125. What is the net cost of the merchandise?

Question

Quizplus · Accepted Answer

First, we need to calculate the discount the buyer can take if they pay within 10 days:
Discount = Invoice Price x Discount Rate
Discount = $6,000 x 0.02
Discount = $120

Next, we subtract the discount and add the transportation costs to get the net cost:
Net cost = Invoice Price - Discount + Transportation Costs
Net cost = $6,000 - $120 + $125
Net cost = $6,005

Therefore, the correct answer is choice letter B.

Merchandise with an Invoice Price of $6,000 Is Purchased Subject