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Your company purchased inventory from Dade Packing for $3,000, with the invoice indicating 2/10, n/30

According to the net method of recording purchases, if the company pays in time (within 10 days) this should be recorded as....

User Viveca
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Final answer:

The company should record the inventory purchase as $2,940, reflecting the 2% discount of $60 for payment within 10 days, as per the net method of recording purchases with terms of 2/10, n/30.

Step-by-step explanation:

The net method of recording purchases indicates that the inventory purchase from Dade Packing of $3,000 should be recorded at its net amount on the assumption that the discount will be taken. Since the terms are 2/10, n/30, this means that if the company pays for the inventory within 10 days, they receive a 2% discount.

To calculate the discount: $3,000 × 2% = $60. Therefore, the amount recorded for the inventory would be $3,000 – $60 = $2,940. If the company pays this amount within 10 days, they have correctly taken advantage of the discount offered.

User Jere
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