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weeeeeb [17]
2 years ago
8

On June 15th, Buehler Company sells merchandise on account to Chaz Co. for $1,000, terms 2/10, n/30. On June 20th, Chaz Co. retu

rns merchandise worth $300 to Buehler Company. On June 24th, payment is received from Chaz Co. for the balance due. What is the amount of cash received?
Business
1 answer:
mestny [16]2 years ago
6 0

Answer:

$ 686

Explanation:

Given:

Amount paid = $ 1000

Discount offered = 2/10 = 2%

Value of returned merchandise = $ 300

Cash received = $ 1000 - $ 300 = $ 700

now 2 % deduction for the return within the given return period

thus,

net cash received = $ 700 - ( 2% of $ 700 )

or

net cash received = $ 700 - $ 14

hence,

net cash received = $ 686

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