Question

A credit sale of $3,600 is made on july 15, terms 2/10, n/30, on which a return of $200 is granted on july 18. what amount is received as payment in full on july 24?

Answer 1

Answer: $3,332

Explanation: The terms of the sale are 2/10, n/30, which means that the buyer gets a 2% discount if the total of the invoice is paid within 10 days. The amount of the original invoice was $3,600, but $200 was returned, so there was an outstanding amount of $3,400. Since it is being paid within 10 days, the buyer will pay 98% of the total due of $3,400, which equals $3,332.