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A company purchased $4,500 worth of merchandise. Transportation costs for the buyer were an additional $395. The company returned $310 worth of merchandise and then paid the invoice within the 3% cash discount period. The total cost of this merchandise is:Multiple Choice$4,415.00.$4,282.00.$4,450.00.$4,459.30.$4,585.00.

Question

A company purchased 4,500worthofmerchandise.Transportationcostsforthebuyerwereanadditional4,500 worth of merchandise. Transportation costs for the buyer were an additional 395. The company returned 310worthofmerchandiseandthenpaidtheinvoicewithinthe3310 worth of merchandise and then paid the invoice within the 3% cash discount period. The total cost of this merchandise is:Multiple Choice4,415.00.4,282.00.4,282.00.4,450.00.4,459.30.4,459.30.4,585.00.

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Solution

Here's how you can calculate the total cost of the merchandise:

  1. Start with the initial cost of the merchandise: $4,500.

  2. Add the transportation costs: 4,500+4,500 + 395 = $4,895.

  3. Subtract the cost of the returned merchandise: 4,8954,895 - 310 = $4,585.

  4. Calculate the 3% cash discount: 4,5850.03=4,585 * 0.03 = 137.55.

  5. Subtract the cash discount from the total cost: 4,5854,585 - 137.55 = $4,447.45.

So, the total cost of the merchandise is closest to $4,450.00.

This problem has been solved

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