A company that purchases inventory for $10,000 with terms 2/10,n/30.It then returns $2,000 of the inventory purchased to the supplier and also receives an allowance for defective inventory of $100.The company pays the amount due within the discount period.What is the amount of the discount that will be taken?
A) $200
B) $158
C) $160
D) $198

Question

Quizplus · Accepted Answer

The discount is calculated on the net amount after returns and allowances. The net purchase is $10,000 - $2,000 - $100 = $7,900. The discount is 2% of $7,900, which is $158.

A Company That Purchases Inventory for $10,000 with Terms 2/10,n/30