A Company Purchases Merchandise from a Wholesaler That Has a List

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.