QUESTION 8 Not yet answered Points out of 300 PR Geraldos Gr

QUESTION 8 Not yet answered Points out of 3.00 PR Geraldo\'s Groceries purchased milk cartons at an Invoice price of $6,000 and terms of 2/10, n/30. On arrival of the goods, Geraldo\'s realized that half of the milk was past the explration date, and returned them immediately to the supplier. If Geraldo\'s pays the remaining amount of the invoice within the discount period, the amount paid should be: Select one: A. $5,880 B. $6,000 C. $2,940 D. $2,880 Next page Previous page

Solution

Terms 2/10,n/30 imply that there would be a discount of 2% if payment is made within 10 days and there will be no discount if payment is made after 10 days but within 30 days.

Total purchase price = $6,000

But half of the milk was returned

Hence, amount payable = 6,000 - 3,000

= $3,000

Discount = 3,000 x 2%

= $60

Net amount payable = 3,000 - 60

= $2,940

Hence, correct option is (c)