Final answer:
The subject of this question is Business. The merchandise balance is $4,600 and the current account balance is $4,508.
Step-by-step explanation:
The subject of this question is Business. The question asks about the sale of merchandise on account and the calculation of the merchandise balance and current account balance.To calculate the merchandise balance, we subtract the cost of goods sold from the amount of merchandise sold on account. In this case, the merchandise balance would be $11,500 - $6,900 = $4,600.
The current account balance is determined by applying the discount terms. In this case, the discount is 2% (2/10), which means that if the payment is made within 10 days, a 2% discount can be taken. The remaining balance is due within 30 days. To calculate the current account balance, we subtract the discount from the merchandise balance. In this case, the current account balance would be $4,600 - (0.02 * $4,600) = $4,508.