A company purchases merchandise with a catalog price of $20,000. The company receives a 35% trade discount from the seller. The seller also offers credit terms of 2/10, n/30. Assuming no returns were made and that payment was made within the discount period, what is the net cost of the merchandise? O O $12.740. $6,860 $13,000. $13,720. $19,600. A SOP 42.2020 Type here to search 2 - A debit to Sales Returns and Allowances and a credit to Accounts Receivable: O Recognizes that a customer returned merchandise and/or received an allowance. O Reflects an increase in amount due from a customer. O Requires a debit memorandum to recognize the customer's return. O Reflects a decrease in amount due to a supplier. O is recorded when a customer takes a discount. o Type here to search f a s A trade discount is: O A reduction in selling price below the list price. O A term used by a purchaser to describe a cash discount given to customers for prompt payment. O A reduction in price for prompt payment. O Also called a rebate. O A term used by a seller to describe a cash discount granted to customers for prompt payment. hott Sparrin