During the purchased of Medeco for their goods for 250 and subsequently returned the 50 dollars and was paid within term of sale given then Medeco is only obliged to pay 196 dollars to their supplier. This is because initially they have 250 credit but it was deducted byu 50 because of returned then it gives us 200 credits but then there is a 2 percent discount within 10 days to less 2 percent it is equal to 196 dollars
