The initial purchase of merchandise was 3,100 dollars.
Transportation cost occurred was 270 dollars.
Then the company returned merchandise of 215 dollars.
The invoice got paid with a discount of 1% cash discount.
The discount is applied on invoice of initially purchased merchandise, net returned merchandise. It does not affect transportation charges.
So, Total Cost = (100% - discount) x (Initial purchase - any return) + (transportation charges)
Total cost = (100% - 1%) x (3,100 - 215) + 270
Total cost = (99%) x (2,885) + 270
Total cost = 0.99 x 2885 + 270
Total cost = 2856.15 + 270 = 3126.15
Hence, total costs of this merchandise are 3,126.15 dollars.
