Merchandise with an Invoice Price of $5,000 Is Purchased on September

question 207

Multiple Choice

Merchandise with an invoice price of $5,000 is purchased on September 2 subject to terms of 2/10, n/30, FOB destination. Freight costs paid by the seller totaled $200. What is the cost of the merchandise if paid on September 12, assuming the discount is taken?

• A) $5,200
• B) $5,096
• C) $4,704
• D) $4,900

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