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Fiesta28 [93]
4 years ago
6

Medlock Company sold inventory on credit for $3,000, terms 2/10, n/30. The cost of the merchandise to Medlock was $2,400. How mu

ch cash will Medlock receive if payment is received within the discount period?
Business
1 answer:
Finger [1]4 years ago
4 0

Answer:

Medlock will receive $2,940

Explanation:

Credit terms of 2/10, n/30 means there is a discount of 2% is available on payment of due amount within discount period of 10 days after sale with net credit period of 30 days.

According to given data

Sales = $3,000

As the payment is made within discount period, so discount will be availed

Discount  = $3,000 x 2% = $60

Now deduct the discount from due balance to calculate the amount received.

Amount Received = $3,000 - $60 = $2,940

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