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 395. The company returned 4,415.00.4,450.00.4,585.00.
Solution
Here's how you can calculate the total cost of the merchandise:
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Start with the initial cost of the merchandise: $4,500.
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Add the transportation costs: 395 = $4,895.
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Subtract the cost of the returned merchandise: 310 = $4,585.
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Calculate the 3% cash discount: 137.55.
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Subtract the cash discount from the total cost: 137.55 = $4,447.45.
So, the total cost of the merchandise is closest to $4,450.00.
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