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 from July 15). Since payment was made on July 24, the discount of 2% is applicable. The amount of 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