Question

A company purchased $2,000 of merchandise on July 5 with terms 1/10, n/30. On July 7, it returned $220 worth of merchandise. On July 8, it paid the full amount due. The amount of the cash paid on July 8 equals:

Answer 1

Answer:

$1,762.2

Explanation:

Calculation for what The amount of the cash paid on July 8 equals:

Cash Paid = ($2,000 - $220) * (199%-1%)

Cash Paid = ($2,000 - $220) * 0.99

Cash Paid = ($1,780*0.99)

Cash Paid = $1,762.2

Therefore The amount of the cash paid on July 8 equals:$1,762.2