Asked by
Whitley Smith
on Dec 17, 2024
Verified
Bob's Restoration purchased merchandise inventory of $67,000. If Bob returned merchandise inventory of $12,000 and was able to take a discount of 4%, what is the total amount owed?
A) $64,800
B) $67,000
C) $52,800
D) $12,000
Merchandise Inventory
Products that a company buys for resale to customers, representing one of the key assets that contribute to the company's revenue.
Discount
A reduction from the usual cost of something or the interest that is deducted from the face value of a promissory note when it is issued.
- Become adept at understanding how to figure out discounts when making purchases.
- Evaluate the implications of merchandise returns and allowances on accounts payable and merchandise inventory.
Verified Answer
DS
Learning Objectives
- Become adept at understanding how to figure out discounts when making purchases.
- Evaluate the implications of merchandise returns and allowances on accounts payable and merchandise inventory.