Asked by
EDGARDO MEDINA
on Nov 12, 2024
Verified
A retailer purchases merchandise with a catalog list price of $30,000. The retailer receives a 15% trade discount and has credit terms of 2/10, n/30. How much cash will be needed to pay this invoice within the discount period?
A) $30,000
B) $24,900
C) $29,400
D) $24,990
Trade Discount
A reduction in the listed price of goods or services offered by sellers to buyers as an incentive or for bulk purchases, not recorded separately in financial books.
Catalog List Price
The advertised price of a product or service in a catalog, before any discounts or promotions.
- Comprehend and utilize the notion of trade discounts along with their impact on the expenses of goods.
- Gain insight into how terms of freight and title passing affect inventory expenses.
Verified Answer
MS
Learning Objectives
- Comprehend and utilize the notion of trade discounts along with their impact on the expenses of goods.
- Gain insight into how terms of freight and title passing affect inventory expenses.