TB MC Qu. 04-146 (Static) A company purchases merchandise... A company purchases merchandise for \( \$ 20,000 \). The seller also offers credit terms of \( 2 / 10, \mathrm{n} / 30 \). Assuming no returns were made, and that payment was made within the discount period, what is the net cost of the merchandise? Multiple choice

When a company takes advantage of the credit terms of \( 2/10, n/30 \), it means they can receive a 2% discount on the total purchase price if payment is made within 10 days. So, if the merchandise cost is \( \$ 20,000 \), the discount would be \( 2\% \) of that amount, which is \( 0.02 \times 20,000 = \$ 400 \). Thus, the net cost of the merchandise after applying the discount would be \( 20,000 - 400 = \$ 19,600 \). So, if this was a multiple-choice question, the correct answer would be \( \$ 19,600 \).