Question

A company purchased $4,000 worth of merchandise. transportation costs were an additional $350. the company later returned $275 worth of merchandise and paid the invoice within the 2% cash discount period. the total amount paid for this merchandise is:

Answer 1

Hi there

Worth of merchandise after purchase returns
4,000−275=3,725

Worth of merchandise after cash discount
3,725+3,725×0.02=3,799.5

Add the transportation cost to the cost of merchandise to get total amount paid for this merchandise
3,799.5+350=4,149.5


Good luck!

Answer 2

$4,000.50

Step-by-step explanation:

The company purchased $4,000 worth of merchandise

transportation costs were $350

returned merchandise worth $275

paid the total invoice within the discount period -2%, discount for early payment = ($4,000 - $275) x 2% = $74.50

total amount paid for the merchandise = $4,000 + $350 - $275 - $74.50 = $4,000.50