Fehr Company sells merchandise on account for $7,500 to Kelly Company with credit terms of 2/10, n/30.Kelly Company returns $1,500 of merchandise that was damaged, along with a check to settle the account within the discount period.What is the amount of the check?
A)$7,350
B)$7,380
C)$6,000
D)$5,880

Question

Quizplus · Accepted Answer

The original sale was $7,500, with a $1,500 return, reducing the amount to $6,000. The 2% discount on $6,000 is $120, so the check amount is $6,000 - $120 = $5,880.

Fehr Company Sells Merchandise on Account for $7,500 to Kelly