A buyer of $$ \$ 7,000 $$ in merchandise inventory failed to take advantage of the vendor's credit terms of $$ 2 / 15 $$, n/45, and instead paid the invoice in full at the end of 45 days. By not taking advantage of the cash discount, the buyer lost the discount of: Multiple Choice

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1. The invoice amount is $$ \$7000 $$.

2. The credit terms are $$2/15, \; n/45$$. This means the buyer could have taken a $$2\%$$ discount if the payment was made within 15 days.

3. The discount amount available is:
   $$
   \text{Discount} = 0.02 \times 7000 = 140
   $$

4. Since the buyer paid at the end of 45 days, the $$2\%$$ discount of $$ \$140 $$ was lost.

Thus, the discount lost by not taking advantage of the cash discount is $$ \$140 $$.
The buyer lost a discount of \$140 by not paying within 15 days.

A buyer of \( \$ 7,000 \) in merchandise inventory failed to take advantage of the vendor's credit terms of \( 2 / 15 \), n/45, and instead paid the invoice in full at the end of 45 days. By not taking advantage of the cash discount, the buyer lost the discount of: Multiple Choice

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