A Company Purchased Merchandise Inventory at a Cost of $8,500

question 194

Multiple Choice

A company purchased merchandise inventory at a cost of $8,500 with credit terms 2/10,net 60.If the company borrows $8,330 to pay for the purchase on the last day of the discount period and pays the loan plus interest in the amount of $8,466.93 on the last day of the credit period,what is the net savings?

• A)$170.00
• B)$(33.07)
• C)$136.93
• D)$33.07
• E)There is no savings to the company

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Definitions:

Receptors

are specialized cells or proteins that detect and respond to external signals such as chemicals, light, or pressure.

Seeing Details

refers to the ability to perceive fine or small elements or differences in objects, images, or scenes.

Cones

Photoreceptor cells in the retina of the eye that function best in relatively bright light and enable humans to perceive color and fine detail.

White, Opaque

A descriptive term typically used in visual or material contexts, indicating an object's color as white and its inability to allow light to pass through.