Final answer:
The net cost of the goods for Trand Company, if paid within the discount period of the credit terms 2/10, n/30, is $3,920 after applying a 2% discount on the $4,000 invoice.
Step-by-step explanation:
If Trand Company pays the invoice within the discount period, the net cost of the goods can be calculated by applying the discount to the invoice price. The credit terms 2/10, n/30 mean that Trand Company can take a 2% discount if the invoice is paid within 10 days. Otherwise, the net amount is due within 30 days without any discount.
The discount on a $4,000 invoice would be 2% of $4,000, which is $80 ($4,000 x 0.02). Therefore, the net cost of the goods if Trand Company pays within the discount period would be the invoice price minus the discount, which equals $3,920 ($4,000 - $80).
The correct answer to the question is B. $3,920.