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Suzie’s Shoes purchased inventory from Shoes Galore with an invoice price of $5,000 and credit terms of 2/10, n/30. What is the net cost of the goods if Suzie’s Shoes pays Shoes Galore within the discount period?Group of answer choices$4,800$4,900$5,000$5,100

Question

Suzie’s Shoes purchased inventory from Shoes Galore with an invoice price of 5,000andcredittermsof2/10,n/30.WhatisthenetcostofthegoodsifSuziesShoespaysShoesGalorewithinthediscountperiod?Groupofanswerchoices5,000 and credit terms of 2/10, n/30. What is the net cost of the goods if Suzie’s Shoes pays Shoes Galore within the discount period?Group of answer choices4,8004,9004,9005,000$5,100

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Solution

Step 1: Understand the credit terms. The credit terms of 2/10, n/30 mean that Suzie's Shoes can take a 2% discount if they pay within 10 days. If they don't take the discount, the full amount is due in 30 days.

Step 2: Calculate the discount. The discount is 2% of the invoice price. So, the discount is 5,00025,000 * 2% = 100.

Step 3: Calculate the net cost of the goods. The net cost of the goods is the invoice price minus the discount. So, the net cost of the goods is 5,0005,000 - 100 = $4,900.

So, the correct answer is $4,900.

This problem has been solved

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