Answer:
The correct answer is $27,440.
Explanation:
According to the scenario, computation of the given data are as follow:-
Term 2/10, n/eom shows 2% percent discount
Discount on sale = $28,000 × 2÷100= $560
(a). We can calculate the account receivable turnover by using following formula:-
Cash refund owed to customer = Amount due on sale - Sales discount
By putting the value, we get
= $28,000 - $560
= $27,440
The amount of the refund owed to the customer is $27,440.
(b). This is same as part (a).
So the amount of the refund owed to the customer is $27,440.
