Question

Concord Corporation purchased merchandise inventory with an invoice price of $14000 and credit terms of 2/13, n/30. What is the net cost of the goods if Concord Corporation pays within the discount period

Answer 1

Thus, the net cost of goods will be $13720

Step-by-step explanation:

The terms of the purchase state that Concord Corp can avail a s% discount f the payment is made within 13 days of the purchase and the credit period for the purchase is 30 days. If the payment is made within the discount period and discount is availed, the net payment that Concord will pay is,

Payment net of discount = 14000 * 0.98 = 13720

Thus, the net cost of goods will be $13720