Davies Company Purchased Merchandise Inventory with an Invoice Price of $9,000

question 69

Multiple Choice

Davies Company purchased merchandise inventory with an invoice price of $9,000 and credit terms of 2/10, n/30. What is the net cost of the goods if Davies Company pays within the discount period?

• A) $9,000
• B) $8,856
• C) $8,820 d $7,200

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Definitions:

OPEC

The Organization of Petroleum Exporting Countries, an intergovernmental organization focused on coordinating and unifying petroleum policies among its member countries to secure fair and stable prices for petroleum producers.

Cartel

An agreement among competing firms to control prices or exclude entry of a new competitor in a market, often to maximize their collective profits.

Group Size

Refers to the number of individuals forming a group or team, often influencing dynamics and outcomes in organizational or social settings.

Major League Baseball

A professional baseball organization that is the oldest of the four major professional sports leagues in the United States and Canada.