Aber Company sells merchandise on account for $1,800 to Borth Company with credit terms of 2/10, n/30. Borth Company returns $300 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) $1,464
B) $1,476
C) $1,470
D) $1,350

Question

Quizplus · Accepted Answer

The original sale was $1,800. After returning $300 of damaged merchandise, the balance is $1,500. With a 2% discount for early payment, the discount is $30 (2% of $1,500). Therefore, the amount of the check is $1,500 - $30 = $1,470.

Aber Company Sells Merchandise on Account for $1,800 to Borth