Question

Ayayai Corp. sells merchandise on account for $2100 to Marigold Company with credit terms of 2/9, n/30. Marigold Company returns $100 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check

Answer 1

Based on the fact that Marigold Company returned some merchandise and paid within the discount period, the check amount would be $1,960.

What would be the check amount?

The credit terms 2/9, n/30 mean that if Marigold Company pays their balance in 9 days, they get a 2% discount.

The amount they will pay for settling their debt in that time is therefore:

= (Amount - Returns ) x ( 1 - discount)

= (2,100 - 100) x ( 1 - 2%)

= $1,960

Find out more on discount periods at brainly.com/question/2192821.