Question

A credit sale of $4700 is made on April 25, terms 2/10, net/30, on which a return of $250 is granted on April 28. What amount will be received as payment in full by the seller if collected on May 4?

Answer 1

The amount that will be received as payment in full by the seller after deducting the return of $250, and applying the 2/10, net/30 terms will be equal to $4,361 on May 4.

What is the 2/10, net/30 rule?

2/10 Net 30 refers back to the change credit offered to a customer for the sale of products or services. 2/10 net 30 approach that if the amount due is paid within 10 days, the customer will experience a 2% discount.

Otherwise, the amount is due in complete within 30 days.

As per the information:

Selling price: $4,700

Discount: 2% (if paid within 10 days of purchase)

returned: $250

The actual amount to be received by the seller:

$\rm\, Actual \,Amount \,to\, be\, Received = (\ 4,700 - \ 250) \\\rm\, Actual \,Amount \,to\, be\, Received= \ 4,450 \times 0.02 \\\rm\, Actual \,Amount \,to\, be\, Received= \ 4,450 - \ 89 \\\rm\, Actual \,Amount \,to\, be\, Received= \ 4,361$

Hence, The amount that will be received as payment in full by the seller after deducting the return of $250, and applying the 2/10, net/30 rule will be equal to $4,361 on May 4.

learn more about 2/10 Net 30 terms:

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