Questions on Accounting?

Question

Z-Mart purchased $4000 worth of merchandise. Transportation costs were an additional $350. It returened $ 275 worth of merchandise and paid the invoice on time, and earded a 2% discount. The amount of the cheque was:
a.)4075
b.)4000.5
c.)3725
d.)3995
e.)3925


My calculation was:( 4000 + 350 - 275 )- ( 4000 + 350 - 275 )- X 2%= 3993.5

but the answer which i've got doesnt match.....How do I calculate this?

Answer 1

The discount is apllied after subtracting the $275, and is not available on transportation. Thus (3725) * .98 + 350 = 4000.5

Answer 2

the way i see it is that you add 4000 (merchandise) and 350 (transport costs) times 2% (discount on paid invoice) gives you 4350 * 0.02 = 87 (money saved)

4350-87=4263 (money paid with discount)

4263 - 275 (returned merchandise) = 3988 (total)

i might be wrong but im taking accounting as a required general overview for my medical assisting major

Answer 3

It's 2% of the purchase, not usually transportation costs but of goods. Try that. 2% of the purchase or goods amount is usually the offer, unless it states 2% of the total invoice. Good luck.