Question

A company purchased $9,100 of merchandise on June 15 with terms of 3/10, n/45. On June 20, it returned $455 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it was entitled to. The cash paid on June 24 equals _________.

Answer 1

Answer:

$259.35

Explanation:

The computation of the amount of cash paid is shown below:

= (Purchase value of merchandise - returned goods of merchandise - discount charges)

= ($9,100 - $455 - $259.35)

= $8,385.65

The discount charges is

= (Purchase value of merchandise - returned goods of merchandise) × discount rate

=  ($9,100 - $455) × 3%

= $259.35

We simply applied the above formula