financial account

Question

Merchandise with an invoice price of RM7,000 is purchased with terms of 2/10, n/30, FOB shipping point. Transportation costs paid by the buyer were RM125. What is the cost of the merchandise purchased if payment is made during the discount period?

Answer 1

7000 x 2% = 140 discount amount

7000 - 140 = 6860 discounted inventory cost

6860 + 125 = 6985 total cost

Hope this helps!