A company purchases merchandise with a catalog price of $27,000. The company receives a 40% trade...

A company purchases merchandise with a catalog price of $27,000. The company receives a 40% trade discount from the seller. The seller also offers credit terms of 1/10, 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 $10962

B $10800

C $15962

D $16200

E $16038

Expert Solution

Codt before payment discount = 27000 - 27000*0.40 = $16200

Net cost of the merchandise = 16200 - 16200*0.01 = $16038

Option E. is correct answer.

ekkarill92 answered 2 years ago

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