Beacon Food Stores purchased canned goods at an invoice price of $4,000 and terms of 2/10, n/30. Half of the goods had been mislabeled and were returned immediately to the supplier. If Harvest Food pays the remaining amount of the invoice within the discount period, the amount paid should be:

Question

Quizplus · Accepted Answer

The total invoice amount is $4,000. Half of the goods have been returned, so Beacon Food Stores needs to pay for only $2,000 worth of goods.

The terms of payment are 2/10, n/30, which means that the company can take a 2% discount if they pay within 10 days.

Therefore, the discounted amount will be:

$2,000 - (2% x $2,000) = $1,960

Hence, the amount paid by Harvest Food within the discount period should be $1,960.

Beacon Food Stores Purchased Canned Goods at an Invoice Price