For a $100,000 Trade Payable with Terms of 2/10,net 45,how

question 34

Multiple Choice

For a $100,000 trade payable with terms of 2/10,net 45,how much would be reported as "purchase discount lost" under the gross method if a payment was made after 60 days?

• A)$0
• B)$2,000
• C)$4,500
• D)$10,000

---

Definitions:

Scienter

Knowledge of wrongdoing or fraudulent intent, particularly in the context of securities law, where it refers to a party's knowledge of false or misleading statements.

Rescind

The act of revoking, canceling, or repealing a contract, returning all parties to their state prior to the agreement.

Compensatory Damages

Financial awards given to a plaintiff to compensate for actual losses or harm suffered.

Misrepresentation

A false statement of fact made by one party to another party, which has the effect of inducing that party into the contract.