A buyer of $7,000 in merchandise inventory failed to take advantage of the vendor's credit terms of 2/15,n/45,and instead paid the invoice in full at the end of 45 days.By not taking advantage of the cash discount,the buyer lost the discount of:

A) $70.
B) $1,050.
C) $700.
D) $100.
E) $140.

Cash Discount

A deduction from the stated price of goods or services offered to buyers as an incentive for early payment.

Credit Terms

Conditions under which credit is extended by a lender to a borrower, including interest rates, repayment schedule, and other stipulations guiding the borrowing.

Merchandise Inventory

Goods or stock that a retailer, wholesaler, or distributor holds for the purpose of resale to customers.