A Credit Sale Of $1,400 Is Made On July 15, Terms 2/10, N/30, On Which A Return Of $100 Is Granted On July 18. What Amount Is Received As Payment In Full On July 24?
Question A credit sale of $1,400 is made on July 15 , with credit terms 2/10, n/30 . A sales return of $100 is granted on July 18 . The customer pays the remaining balance in full on July 24 . What amount is received as payment in full? Options A. $1,400 B. $1,274 ✅ C. $1,350 D. $1,372 Correct Answer: B. $1,274 The amount received as payment in full on July 24 is $1,274 . Step-by-Step Solution Let's solve the problem one step at a time. Step 1: Understand the Credit Terms (2/10, n/30) The credit terms 2/10, n/30 mean: The buyer receives a 2% cash discount if payment is made within 10 days of the invoice date. Otherwise, the full amount (net) is due within 30 days . Since the sale occurred on July 15 and payment was made on July 24 , the payment falls within the 10-day discount period . Therefore, the customer qualifies for the 2% discount. Step 2: Calculate the Net Amount After the Sales Return The customer returned goods worth $100 on July 18 . Net Credit Sale = Orig...