Exter Co Receives Terms of 2/10, N/30 on All Invoices from from Garn

question 24

Multiple Choice

Exter Co. receives terms of 2/10, n/30 on all invoices from Garn Industries. On January 15, 2011, Exter purchased items from Garn for $4,200, excluding taxes and shipping costs. What amount would Exter use as the purchase discount if the invoice was paid on January 28, 2011?

• A)$ 0
• B)$ 84
• C)$4,116
• D)$4,200

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Definitions:

Technical Areas

Specific fields or sectors focused on scientific, engineering, or technological disciplines.

Reward Power

The capacity to offer something of value as a means of influencing other people.

Coercive Power

The capacity to punish or withhold positive outcomes as a means of influencing other people.

Incentives

Rewards or benefits offered to motivate employees or stimulate greater output or investment.