Merchandise with an invoice price of $5,000 is purchased on September 2 subject to terms of 2/10, n/30, FOB shipping point. Freight costs paid by the seller totaled $200. What is the cost of the merchandise if paid on September 11, assuming the discount is taken? a. $5,200 b. $5, 100 C. $5,000 d. $4,900

B)$5,100

Would pay $5,100

discount 2% of $5,000 is $5,000*0.02= $100 savings

5000 less 100 savings=4,900

since it is FOB shipping point we add 200, thus totaling to $5,100

FOB shipping point and the seller paid the $200, the $200 would be added to the discounted amount of $4,900 for a total of $5,100.

Step-by-step explanation

Would pay $5,100

discount 2% of $5,000 is $5,000*0.02= $100 savings

5000 less 100 savings=4,900

since it is FOB shipping point we add 200, thus totaling to $5,100

FOB shipping point and the seller paid the $200, the $200 would be added to the discounted amount of $4,900 for a total of $5,100.