Final answer:
LeeCo.'s payment is calculated by applying the 2% discount on the list price of $7,700, resulting in a discount of $154. The net payable after deducting the discount from the list price is $7,546, as freight costs are prepaid by Macy.
Step-by-step explanation:
The question involves calculating the payment after discounts and considering freight costs in a business transaction, which is based on the terms of sale. The sale terms 2/10, n/30 mean that the buyer can take a 2% discount if the invoice is paid within 10 days, otherwise the net amount is due in 30 days. Here, Macy agreed to prepay the $30 freight, which means LeeCo. does not need to pay freight costs.
To find out what LeeCo. will pay, we first calculate the discount amount:
List Price: $7,700
Discount Rate: 2% of $7,700 = 0.02 × $7,700 = $154
Therefore, the discounted price is the list price minus the discount: $7,700 - $154 = $7,546. Since the freight is prepaid, LeeCo. will pay the discounted price only.