Question

A company purchased $3,700 worth of merchandise. Transportation costs were an additional $320. The company returned $255 worth of merchandise and then paid the invoice within the 1% cash discount period. The total cost of this merchandise is:

Answer 1

$3,727.35

Step-by-step explanation:

The values in parenthesis are substracted

Merchandise cost $3,700

Transportation costs $320

Merchandise returned ($255)

Total cost $3,765

1% discount ($37.65)

Final cost $3,727.35

As we can see, the total cost of the merchandise is $3,727.35