A credit sale of ₤3,200 is made on April 25, terms 2/10, n/30, on which a return of ₤200 is granted on April 28. What amount is received as payment in full on May 4?

Question

Quizplus · Accepted Answer

The amount due after the return is ₤3,000 (₤3,200 - ₤200). The customer is eligible for a 2% discount if payment is made within 10 days, which is ₤60 (2% of ₤3,000). Therefore, the amount received as payment in full on May 4 is ₤2,940 (₤3,000 - ₤60).

A Credit Sale of ₤3,200 Is Made on April 25