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 $1,500 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 $150.

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 ten days of purchase?

Sales Involving Discounts: Periodic Inventory System