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A Company That Purchases Inventory for $10,000 with Terms 2/10,n/30

Question 11

Multiple Choice

A company that purchases inventory for $10,000 with terms 2/10,n/30.It then returns $2,000 of the inventory purchased to the supplier and also receives an allowance for defective inventory of $100.The company pays the amount due within the discount period.What is the amount of the discount that will be taken?


A) $200
B) $158
C) $160
D) $198

Correct Answer:

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