Merchandise with an invoice price of $5,000 is purchased on September 2 subject to terms of 2/10, n/30, FOB destination. Freight costs paid by the seller totaled $200. What is the cost of the merchandise if paid on September 12, assuming the discount is taken?

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The invoice price is $5,000. With terms of 2/10, n/30, a 2% discount is available if paid within 10 days. The discount is 2% of $5,000, which is $100. Therefore, the cost of the merchandise if paid on September 12 is $5,000 - $100 = $4,900. Freight costs are not included in the cost to the buyer as they are paid by the seller (FOB destination).

Merchandise with an Invoice Price of $5,000 Is Purchased on September