Question

Oriole Company sells merchandise on account for $7800 to Sunland Company with credit terms of 2/13, n/30. Sunland Company returns $1200 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check?
a. $6468
b. $7668
c. $7644
d. $6600

Answer 1

Answer:

a. $6468

Explanation:

Calculation for the amount of the check

Based on the information given we were told that Oriole Company sells merchandise on account for the amount of $7800 to Sunland Company with credit terms of 2/13, n/30 in which Sunland Company returns the amount of $1200 of merchandise that was damaged which means that the amount of the check will be calculated as:

Amount of the check=[($7,800 - $1,200) *(100%-2%) ]

Amount of the check=$6,600*0.98

Amount of the check=$6,468

Therefore the Amount of the check will be $6,468