Question

Beacon Food Stores purchased canned goods at an invoice price of $4,000 and terms of 2/10, n/30. Half of the goods had been mislabeled and were returned immediately to the supplier. If Beacon Food pays the remaining amount of the invoice within the discount period, the amount paid should be:

Answer 1

Beacon Food Stores will pay $1,960 for the goods if they pay within the discount period after returning half of the mislabeled goods.

Step-by-step explanation:

Beacon Food Stores purchased canned goods with an invoice price of $4,000. As per the terms 2/10, n/30, a 2% discount is available if the payment is made within 10 days. However, half of the goods are returned because they were mislabeled, which means the actual invoice that needs to be considered is half of the original amount.

To calculate the amount Beacon Food Stores would pay within the discount period:

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• Halve the original invoice price: $4,000 / 2 = $2,000.
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• Calculate the discount: 2% of $2,000 = $40.
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• Subtract the discount from the halved invoice price: $2,000 - $40 = $1,960.

Therefore, if Beacon Food pays within the discount period, the amount paid should be $1,960.