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Company L purchased merchandise inventory with an invoice price of $16600 and credit terms of 2/13, n/30. What is the net cost of the goods if Company L pays within the discount period?

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Final answer:

The net cost of the goods for Company L when paying within the 2/13, n/30 credit terms discount period is $16,268, after deducting a 2% discount from the invoice price of $16,600.

Step-by-step explanation:

The question pertains to the net cost of goods purchased by Company L with certain credit terms. The invoice price of the merchandise inventory is $16,600 with credit terms of 2/13, n/30.

This means the company can take a 2% discount if it pays within 13 days; otherwise, the full amount is due in 30 days.

Calculating the discount: $16,600 × 0.02 = $332.

So, if Company L pays within the discount period, they can deduct $332 from the invoice price.

Hence, the net cost of the goods if paid within the discount period would be: $16,600 - $332 = $16,268.

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