Birk Company sells merchandise on account for $5,000 to Kiner Company with credit terms of 2/10, n/30. Kiner Company returns $1,000 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check?

Question

Quizplus · Accepted Answer

The original sale was $5,000, with $1,000 returned, leaving $4,000. The discount is 2% of $4,000, which is $80. Therefore, the amount of the check is $4,000 - $80 = $3,920.

Birk Company Sells Merchandise on Account for $5,000 to Kiner