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Perpetual Inventory - Purchase Discounts
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Perpetual Inventory - Purchase Discounts
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4. Merchandising Operations / Perpetual Inventory - Purchase Discounts / Problem 1
Problem 1
A company purchases \$8,000 worth of goods with terms 2.10 net 30. If they pay on the 5th day, what is the impact on their cash flow?
A
Cash flow decreases by \$7,920.
B
Cash flow decreases by \$7,840.
C
Cash flow decreases by \$8,000.
D
Cash flow decreases by \$8,160.
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