A company purchased $1,800 of merchandise on July 5 with terms 2/10,n/30.On July 7,it returned $200 worth of merchandise.On July 8,it paid the full amount due.The amount of the cash paid on July 8 equals:
A)$200.
B)$1,564.
C)$1,568.
D)$1,600.
E)$1,800.

Question

Quizplus · Accepted Answer

The amount due for the merchandise after the return is:

$1,800 - $200 = $1,600

The company can take advantage of the 2% discount if they pay within 10 days. The discount is:

$1,600 x 2% = $32

So the amount of cash paid by the company is:

$1,600 - $32 = $1,568

Therefore, the best choice is C.

A Company Purchased $1,800 of Merchandise on July 5 with Terms