Question

A company purchased $1,800 of merchandise on December 5. On December 7, it returned $200 worth of merchandise. On December 8, it paid the balance in full, taking a 2% discount. The amount of the cash paid on December 8 equals:

1) $200
2) $1,564
3) $1,800
4) $1,568
5) $1,600

Answer 1

The total cash paid on December 8 by the company, after returning merchandise and taking a 2% discount, was $1,568.

Step-by-step explanation:

The problem is asking us to calculate the amount of cash paid by the company on December 8 after returning a portion of merchandise and taking a 2% discount on the remaining balance. Here are the calculations:

So, the correct answer is $1,568, which is option 4.