Question

Record Santa Fe Retailing's purchase of merchandise 'as is' (with no returns) from Mesa Wholesalers with credit terms of 3/10, n/60 and an invoice price of $24,000. What is the purchase price after the discount?

Answer 1

The purchase price after a 3% discount on an invoice price of $24,000 from Mesa Wholesalers would be $23,280.

Step-by-step explanation:

The student is asking about the calculation of a purchase price after a discount has been applied. Santa Fe Retailing is purchasing merchandise from Mesa Wholesalers and the credit terms are 3/10, n/60, which means that the purchaser can take a 3% discount off the invoice price if it pays within 10 days, otherwise the net amount is due within 60 days. With an invoice price of $24,000, we calculate the discount by taking 3% of $24,000, which is $720. Therefore, the purchase price after the discount would be $24,000 - $720 = $23,280.