Question

Tamarisk, Inc. sells $2700 of merchandise on account to Baltic Company with credit terms of 2/11, n/30. If Baltic Company remits a check taking advantage of the discount offered, what is the amount of Baltic Company's check

Answer 1

$2,646

Step-by-step explanation:

Given that

Sale value of merchandise on account = $2,700

Credit terms = 2/11, n/30 this means if the payment is made within the 11 days, the 2% discount is given and the credit period of the payment is 30 days

So, by considering the above information, the advantage of the discount offered, the amount is

= $2,700 × (1 - 0.02)

= $2,646