A household appliance dealer buys refrigerators from a manufacturer and resells them to its customers. a. The

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A household appliance dealer buys refrigerators from a manufacturer and resells them to its customers.

a. The manufacturer sets a list or catalogue price of \(\$ 2,500\) for a refrigerator. The manufacturer offers its dealers a 30 percent trade discount.

b. The manufacturer sells the machine under terms of FOB destination. The cost of shipping is \(\$ 240\).

c. The manufacturer offers a sales discount of \(2 / 10, n / 30\). Sales discounts do not apply to shipping costs.

What is the net cost of the refrigerator to the dealer, assuming it is paid for within 10 days of purchase?

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Principles Of Financial Accounting

ISBN: 9780538755160

11th Edition

Authors: Belverd E Needles, Marian Powers

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