A Company Purchases Merchandise with a Catalog Price of $20,000

question 43

Multiple Choice

A company purchases merchandise with a catalog price of $20,000.The company receives a 35% trade discount from the seller.The seller also offers credit terms of 2/10,n/30.Assuming no returns were made and that payment was made within the discount period,what is the net cost of the merchandise?

• A)$13,720.
• B)$19,600.
• C)$6,860.
• D)$13,000.
• E)$12,740.

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