Happy's Hot Dogs sells merchandise on account for $3,000 to Karen's Catering with credit terms of 2/10, n/30.Karen's Catering returns $500 of merchandise that was damaged, along with a check to settle the account within the discount period.What is the amount of the check?

Question

Quizplus · Accepted Answer

The discount is 2% if paid within 10 days. The amount of the discount is $3,000 x 2% = $60. The amount of the check is $3,000 - $60 - $500 = $2,440.

Happy's Hot Dogs Sells Merchandise on Account for $3,000 to Karen's