Question

A company purchased $3,700 worth of merchandise. Transportation costs were an additional $320. The company returned $255 worth of merchandise and then paid the invoice within the 1% cash discount period. The total cost of this merchandise is:

Answer 1

Answer:

$3,727.35

Explanation:

The values in parenthesis are substracted

Merchandise cost             $3,700

Transportation costs         $320

Merchandise returned      ($255)

Total cost                           $3,765

1% discount                        ($37.65)

Final cost                            $3,727.35

As we can see, the total cost of the merchandise is $3,727.35