Cosmos company on july 15 sells merchandise on account to cajon co. for $6,000, terms 2/10, n/30. on july 20 cajon co. returns m

Positive Marginal Utility: When having more of something provides you more happiness, you have positive marginal utility. Assume you regularly eat a piece of cake, however a second piece would bring you even more joy. Then the marginal utility from cake consumption is positive.
Zero Marginal Utility: It occurs when using more of an item provides no additional measure of satisfaction. For instance, you might feel reasonably full after 2 pieces of cake but not significantly better after a third slice. Your marginal utility on eating cake is 0 in this situation.
Negative Marginal Utility: It occurs when you have an abundance of an item, and ingesting more is really hazardous. After eating three slices of cake, the fourth piece of cake may potentially make you sick.

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3 years ago

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Cosmos company on july 15 sells merchandise on account to cajon co. for $6,000, terms 2/10, n/30. on july 20 cajon co. returns m

erchandise worth $1,000 to cosmos company. on july 24 payment is received from cajon co. for the balance due. what is the amount of cash received?

Business

1 answer:

faust18 [17] · Answer 1 · 2022-08-07T15:25:32+03:00

On July 15, there is pending 6000 on the cash account.

Then on July 20, Cajon Co. returns the merchandise of 1000, so the pending cash decreases and now it is only 5000.

Afterwards, on July 24, Cajon paid for the merchandise. Since the credit terms is 2/10, 2 percent discount will be given if they paid within 10 days. So 5000 multiplied by . 02 = 100. 5000 - 100 = $4900 is the amount of cash received.