Final answer:
The amount of the refund owed to the customer for the return of merchandise, initially purchased for $40,000 with a 2% early payment discount, is $39,200 after accounting for the discount received.
Step-by-step explanation:
The question involves calculating the amount of refund owed to a customer after they return merchandise that they had purchased on sale terms with a discount for early payment. Since the customer is returning the goods within the discount period, we need to consider the discount they received on the original purchase to determine the refund amount.
Original sale amount: $40,000
Discount terms: 2/10, n/eom (2% discount if paid within 10 days, net due at the end of the month)
Assuming the payment was made within the discount period, the customer would have paid:
$40,000 - ($40,000 x 0.02) = $40,000 - $800 = $39,200
Since the entire shipment is being returned and the seller consents to the return, the amount of the refund would be the amount the customer paid after the discount:
Refund owed to the customer: $39,200