A credit sale of $3,600 is made on July 15, terms 2/10, n/30, on which a return of $200 is granted on July 18. What amount is received as payment in full on July 24?

Question

Quizplus · Accepted Answer

The discount period ended on July 25 (10 days after July 15). Since the payment was made on July 24, the customer is eligible for the discount. The amount of the discount is $3,600 x 2% = $72. The amount received as payment in full is $3,600 - $72 = $3,332.

A Credit Sale of $3,600 Is Made on July 15