Question

A company purchased $3,400 worth of merchandise. transportation costs were an additional $300. the company returned $235 worth of merchandise and then paid the invoice within the 1% cash discount period. the total cost of this merchandise is:

Answer 1

company purchased $3,400 worth of merchandise
transportation costs were an additional $300
the company returned $235 worth of merchandise
then paid the invoice within the 1% cash discount period = 100 - 1 = 99% = 0.99
total cost of this merchandise=[($3,400 - $235) x .99] + $300 = $4,000.50 = [3165 x 0.99] +$300 = 3133.35 + $300 = $3433.35