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A Company Purchases Merchandise with a Catalog Price of $20,000

question 94

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A company purchases merchandise with a catalog price of $20,000. The company receives a 35% trade discount from the seller. The seller also offers credit terms of 2/10, n/30. Assuming no returns were made and that payment was made on time, what is the net cost of the merchandise?


Definitions:

Unilaterally

An action or decision made by one party or individual without the agreement or participation of others.

Colgate Doctrine

A legal principle allowing manufacturers to set minimum retail prices for products under certain conditions without violating antitrust laws.

Suggested Resale Prices

Recommendations made by manufacturers or wholesalers on the price at which goods should be sold to the public.

Sherman Act

A landmark federal statute in the antitrust law that prohibits monopolistic practices and promotes competition.

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