Willetta Company purchases inventory for $29,000 with terms 2/10, n/30. It then returns $3,900 of the inventory purchased to the supplier and also receives an allowance for defective inventory of $290. The company pays the amount due within the discount period. What is the amount of the discount that will be taken

Discount taken is  $496.20  

Explanation:

The amount of purchases after some items were returned and also defective inventory allowance was taken needs to first of all be established.

adjusted purchases=$29,000-$3,900-$290=$ 24,810.00  

Thereafter, the amount of discount taken is 2% of the adjusted purchases amount computed above.

Discount taken=$ 24,810.00*2=$ 496.20  

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