Question

en-Tech sells merchandise on account for $4,000 to Acorn Company with credit terms of 2/10, n/30. Within the discount period, Acorn Company returns $500 of damaged merchandise and a check for ________ to settle the account.

Answer 1

Answer:

Acorn Company returns $500 of damaged merchandise and a check for $3,430 to settle the account.

Explanation:

The Credit term 2/10 , n/30 means that 2% of discount is available if payment is made within 10 days after sales with net credit period of 30 days.

Amount due = $4,000

Sales Return = $500

Amount due net of returns = $4,000 - $500 = $3,500

Discount available = $3,500 x 2% = $70

Amount of check to settle = Net Amount due - discount

Amount of check to settle = $3,500 - $70

Amount of check to settle = $3,430