Question

Aber Company sells merchandise on account for $3,000 to Borth Company with credit terms of 2/10, n/30. Borth Company returns $500 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check

Answer 1

Answer: $‭2,450‬

Step-by-step explanation:

Discount terms of 2/10, n/30 mean that if the customer was to pay off their balance within 10 days, they would get a discount of 2%. If they couldn't, they would pay the total in 30 days.

Net goods sold = Sales - sales returns

= 3,000 - 500

= $2,500

Amount to be paid including discount = 2,500 * ( 1 - 2%)

= $‭2,450‬