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: group of answer choices .

-$200.
-$1,564
-$1,568.
-$1,600.
-$1,800.

Answer 1

The company initially purchased merchandise for $1,800, returned $200, and paid the remaining balance of $1,600 with a 2% early payment discount, resulting in a final payment of $1,568. Therefore correct option is C

Step-by-step explanation:

The question involves calculating the amount of cash paid by a company after it took a discount for early payment and returned part of the merchandise. The company purchased merchandise worth $1,800 and returned $200 worth, leaving a balance of $1,600. They then took a 2% discount on the remaining balance.

To find the cash paid, we calculate 2% of $1,600, which is $32. Therefore, the cash paid is the balance minus the discount: $1,600 - $32, which equals $1,568.