On march 12, klein company, inc. sold merchandise in the amount of $7,800 to babson company, with credit terms of 2/10, n/30. th
e cost of the items sold is $4,500. klein uses the perpetual inventory system. on march 15, babson returns some of the merchandise. the selling price of the merchandise is $600 and the cost of the merchandise returned is $350. babson pays the invoice on march 20, and takes the appropriate discount. the amount that klein receives from babson on march 20 is: $7,800. $7,644. $7,044. $7,056. $7,200.
Given: <span>march 12 - Klein company, inc. sold merchandise in the amount of $7,800 to Babson company, with credit terms of 2/10, n/30 </span><span>march 15 - Babson returns some of the merchandise. the selling price of the merchandise is $600 march 20 - Babson pays the invoice and takes the appropriate discount.
Since March 20 is still within the 10-day discount from date of purchase, Babson is entitled to 2% discount.
When you are able to <span>claim a deduction such as student loan interest would taxable income would be lower and your tax liability would go higher. The liability would increase since a loan is a debt. Hope this answers the question. Have a nice day.</span>
