A Company Purchases Merchandise from a Wholesaler That Has a List

question 120

Multiple Choice

A company purchases merchandise from a wholesaler that has a list price of $20,000. The company receives a 35% trade discount from the supplier and credit terms of 2/10, n/30. Assuming no returns were made and that payment was made within the discount period, what is the net cost of the merchandise?

• A)$13,720.
• B)$19,600.
• C)$6,860.
• D)$13,000.
• E)$12,740.

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Definitions:

Population

In statistics and demography, a comprehensive group of individuals or items that share one or more characteristics from which data can be gathered and analyzed.

Double-blind Study

A study design in which neither the participants nor the researchers know which participants belong to the control group and which belong to the experimental group until the conclusion of the research.

Experimental Drug

A pharmaceutical compound that is in the process of being tested for effectiveness and safety in treating a particular disease or condition but has not yet received governmental approval for general use.

Placebo

A substance with no therapeutic effect, used as a control in testing new drugs.