A company purchased $1,800 of merchandise on December 5. On December 7, it returned $200 worth of merchandise. On December 8, it paid the balance in full, taking a 2% discount. The amount of the cash paid on December 8 equals:
A) $200.
B) $1,564.
C) $1,568.
D) $1,600.
E) $1,800.

Question

Quizplus · Accepted Answer

The net amount of merchandise purchased is $1,800 - $200 = $1,600.
The discount provided for paying in full is 2% of $1,600 = $32.
Therefore, the cash paid on December 8 is $1,600 - $32 = $1,568.

A Company Purchased $1,800 of Merchandise on December 5