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What Is the Amount of the Discount to Be Taken

question 129

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What is the amount of the discount to be taken by a company that purchases inventory for $10,000 with terms 2/10,n/30,returns $2,000 of the inventory purchased,receives an allowance for defective merchandise of $100,and pays the amount due within the discount period?


Definitions:

Price-inelastic

A characteristic of a good for which demand does not change significantly when its price changes.

Total Revenue

The overall amount of money received by a company for goods sold or services provided during a certain time period.

Total Revenue

The total receipts a firm receives from sales of its product or services.

Total Revenue

The overall amount of money generated by a firm from selling its goods or services, calculated as the unit price multiplied by the quantity sold.

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