Question

A company purchased $4,400 worth of merchandise. Transportation

costs were an additional $385. The company returned $305 worth of
merchandise and then paid the invoice within the 2% cash discount
period. The total cost of this merchandise is:

Answer 1

The total cost of the merchandise is $4,480.

Step-by-step explanation:

To calculate the total cost of the merchandise, we need to add the initial purchase cost, transportation costs, and deduct the amount returned. The initial purchase cost was $4,400 and the transportation costs were $385, giving us a subtotal of $4,785. After deducting the return of $305, the final cost is $4,480.