First Company sold merchandise on credit to Second Company for $1,000 on July 1, with terms of 2/10, net /30. On July 6, Second returned $200 worth of merchandise claiming the materials were defective. On July 8, First received a payment from Second and credited Accounts Receivable for $450. On July 24, Second Company paid the remaining balance on its account.
See First Company information above. What was the total cash received from Second during July?

Question

Quizplus · Accepted Answer

- Second Company returned $200 worth of merchandise, so the remaining balance on their account was $800 ($1,000 - $200).
- Second Company made a payment of $450, leaving a remaining balance of $350 ($800 - $450).
- The total cash received from Second during July was $450 (payment received on July 8).
- On July 24, Second Company paid the remaining balance on their account, which was $350.
- Therefore, the total cash received from Second during July was $450 + $350 = $800.

First Company Sold Merchandise on Credit to Second Company for $1,000