Question

Cleese Company sells merchandise on account for $3,000 to Langston Company with credit terms of 2/10, n/30. Langston Company returns $600 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check?

Answer 1

$2,352

Step-by-step explanation:

The computation of the amount is shown below:

= Sale value of merchandise - returned goods - discount

where,

Sales value of merchandise is $3,000

Returned goods is $600

And, the discount is

= ($3,000 - $600) × 2%

= $48

So, the amount of the check is

= $3,000 - $600 - $48

= $2,352

We simply applied the above formula so that the amount of the check copuld arrive