Pet Foods Plus purchased bagged dog food at an invoice price of $6,000 and terms of 2/10,n/30.Half of the bags had been damaged in shipment and delivery was refused.If Pet Foods Plus pays the remaining amount of the invoice within the discount period,the amount paid should be:

Question

Quizplus · Accepted Answer

Pet Foods Plus will pay for half of the invoice amount since half of the bags were refused. The invoice amount for the undamaged bags is $3,000 ($6,000 / 2). If they pay within the discount period, they receive a 2% discount, so they pay $3,000 - ($3,000 * 0.02) = $2,940.

Pet Foods Plus Purchased Bagged Dog Food at an Invoice