Question

A company purchased $2,900 of merchandise on July 5 with terms 1/10, n/30. On July 7, it returned $500 worth of merchandise. On July 8, it paid the full amount due. The amount of the cash paid on July 8 equals:

Answer 1

Answer: $2376

Step-by-step explanation:

Based on the information given in the question, the amount of the cash paid on July 8 will be calculated as the difference between the net sales and the discount.

Net sales = $2900 - $500 = $2400

Discount = $2400 × 1% = $24

Therefore, The amount of the cash paid on July 8 will be:

= $2400 - $24

= $2376