Question

Tamarisk, Inc. sells merchandise on account for $2500 to Culver Company with credit terms of 2/15, n/30. Culver Company returns $200 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check

Answer 1

Answer:

$2,254

Explanation:

The computation of the amount of the check is shown below:

= Sale value of merchandise - returned goods - discount amount

where,

Sale value of merchandise is $2,500

Returned goods is $200

And, the discount is 2% of $2,300 = $46

So, the amount of the check is

= $2,500 - $200 - $46

= $2,254

We simply applied the above formula so that the correct amount could come