Question

A credit sale of $1100 is made on July 15, terms 2/10, net/30, on which a return of $200 is granted on July 18. What amount is received as payment in full on July 24

Answer 1

The amount is received as payment in full on July 24 is $882

Step-by-step explanation:

The computation of the amount received as payment in full is shown below:

= Credit sales - returned goods - discount allowed

= $1,100 - $200 - ($1,100 - $200 × 2%)

= $900 - $18

= $882

Hence, the amount is received as payment in full on July 24 is $882

And, the same is to be considered

We simply applied the above formula