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Merchandise is purchased for $5,000 FOB shipping point, credit terms 2/10, n/30, but the seller has agreed to prepay shipping cost of $400 and add

Merchandise is purchased for $5,000 FOB shipping point, credit terms 2/10, n/30, but the seller has agreed to prepay shipping cost of $400 and add that amount to the invoice for an invoice total of $5,400. If payment is made by the purchaser before the discount deadline the amount of the discount will be a. $108 b. **$100 c. $8 d. $540

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