A company purchased $4,000 worth of merchandise. Transportation costs were an additional $350. The company later returned $250 worth of merchandise and paid the invoice within the 2% cash discount period. What is the total amount paid for this merchandise is?

incorrect $3,995

*****correct $4000.50

anyone please??

To find the total amount paid for the merchandise, we need to calculate the following components:

1. Cost of merchandise: $4,000
2. Transportation costs: $350
3. Cash discount: 2% of the total cost of merchandise after deducting the returned merchandise
4. Returned merchandise: $250

Let's calculate each component step by step:

1. Cost of merchandise: $4,000
2. Transportation costs: $350
Total cost of merchandise with transportation: $4,000 + $350 = $4,350
3. Returned merchandise: $250
Total cost of merchandise after return: $4,350 - $250 = $4,100
4. Cash discount: 2% of $4,100
Cash discount: 0.02 * $4,100 = $82

To determine the total amount paid for the merchandise, we subtract the cash discount from the total cost of merchandise after return:

Total amount paid for the merchandise = Total cost of merchandise after return - Cash discount
= $4,100 - $82
= $4,018

Therefore, the total amount paid for the merchandise is $4,018.

$3,995