Conway Company purchased merchandise inventory with an invoice price of $12,000 and credit terms of 2/10, n/30.What is the net cost of the goods if Conway Company pays within the discount period?
A)$12,000
B)$11,760
C)$10,800
D)$11,040

Question

Quizplus · Accepted Answer

The discount is 2% of $12,000, which is $240. Therefore, the net cost if paid within the discount period is $12,000 - $240 = $11,760.

Conway Company Purchased Merchandise Inventory with an Invoice Price of $12,000