Answer:
$12,740
Explanation:
Given:
Catalog price of the merchandise = $20,000
Trade discount received = 35%
Credit terms offer = 2/10, n/30
Now,
The amount of trade discount offered = 35% of $20,000
= 0.35 × $20,000
= $7,000
Therefore,
the Purchase cost of the product = $20,000 - $7,000
= $13,000
The amount of credit discount offered = 2% of $13,000
= 0.02 × $13,000
= $260
Hence,
The net cost of the merchandise = $13,000 - $260 = $12,740
