Casin Company sells $700 of merchandise on account to Delta Exploration with credit terms of 2/10, n/30. If Delta Exploration remits a check taking advantage of the discount offered, what is the amount of Delta Exploration's check?
A) $490
B) $686
C) $630
D) $560

Question

Quizplus · Accepted Answer

Delta Exploration can take a 2% discount on the $700 merchandise if they pay within 10 days. The discount is 2% of $700, which is $14. Therefore, the amount of the check is $700 - $14 = $686.

Casin Company Sells $700 of Merchandise on Account to Delta