A company using the perpetual inventory system purchased inventory worth $25,000 on account with terms of 2/10,

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Question:

A company using the perpetual inventory system purchased inventory worth $25,000 on account with terms of 2/10, n/30. Defective inventory of $2,000 was returned 2 days later and the accounts were appropriately adjusted. If the invoice is paid within 10 days, the amount of the purchase discount that would be available to the company is ________.

A. $490

B. $460

C. $540

D. $500