Conway Company purchased merchandise inventory with an invoice price of $9,000 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) $9,000
B) $8,820
C) $8,100
D) $8,280

Question

Quizplus · Accepted Answer

The credit terms 2/10, n/30 mean that Conway Company can take a 2% discount if they pay within 10 days. The discount is 2% of $9,000, which is $180. Therefore, the net cost if paid within the discount period is $9,000 - $180 = $8,820.

Conway Company Purchased Merchandise Inventory with an Invoice Price of $9,000