Question

A credit sale of $4800 is made on April 25, terms 2/10,n/30, on which a return of $200 is granted on April 28. What amount will be received as payment in full if collected on May 4 a.$4800 b.$4704 c.$4508 d.$4600 ​

Answer 1

After a return of $200 from the initial $4800 credit sale, the balance is $4600. With a 2% discount for payment within the discount period, $92 is deducted, resulting in a final payment of $4508.

This correct answer is c.

Step-by-step explanation:

The initial credit sale was $4800, with a return of $200 granted on April 28, reducing the amount to $4600. Since the payment is collected within the discount period (2/10,n/30), a 2% discount on $4600 is applicable. Calculating the discount, we get:

Discount = 2% of $4600 = 0.02 × $4600 = $92.

Subtracting the discount from the amount after the return:

Amount after discount = $4600 - $92 = $4508.

Therefore, the amount that will be received as payment in full is $4508.

This correct answer is c.