A Company That Purchases Inventory for $10,000 with Terms 2/10,n/30

question 11

Multiple Choice

A company that purchases inventory for $10,000 with terms 2/10,n/30.It then returns $2,000 of the inventory purchased to the supplier and also receives an allowance for defective inventory of $100.The company pays the amount due within the discount period.What is the amount of the discount that will be taken?

• A) $200
• B) $158
• C) $160
• D) $198