Question

On June 15, Oakley Inc. sells inventory on account to Sunglass Hut (SH) for $3,500, terms 2/10, n/30. On June 20, SH returns to Oakley inventory that SH had purchased for $800. On June 24, SH completely fulfills its obligation to Oakley by making a cash payment. What is the amount of cash paid by SH to Oakley

Answer 1

$2,646

Step-by-step explanation:

Calculation to determine the amount of cash paid by SH to Oakley

Cash paid=($3,500-$800)-[($3,500-$800)*2%]

Cash paid =$2,700-$54

Cash =$2,646

Therefore The the amount of cash paid by SH to Oakley is $2,646