Question
On December 22, 2019 Wildwood Company placed an order to purchase merchandise on account from seller Berry, Inc. Berry lists the merchandise in the online
On December 22, 2019 Wildwood Company placed an order to purchase merchandise on account from seller Berry, Inc. Berry lists the merchandise in the online catalog at a price of $28,000. Berry carries the goods on the balance sheet at a historical cost of $12,000. Wildwood is a good customer and was able to negotiate the following terms: (i) a 5% trade discount and (ii) payment terms of 2/10, n/30. The goods were shipped by Berry FOB shipping point on December 28, 2019 and were delivered to Wildwoods facility on January 4, 2020. On January 4 (i.e. at the time of the delivery), Wildwood paid $2,000 of shipping cost and returned $1,600 of merchandise to Berry (the returned items had an original cost to Berry of $560). Wildwood paid Berry in full on January 5.
Consider the above facts and select the answer choice below that shows the cash paid by Wildwood on January 5 in order to settle the account in full. (Round your final answers to the nearest $1).
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