A sales invoice included the following information: merchandise price, $8,000; terms 2/10, n/eom.Assuming that a credit for merchandise returned of $1,000 is granted prior to payment, and that the invoice is paid within the discount period, what is the amount of cash received by the seller?

Question

Quizplus · Accepted Answer

First, we need to calculate the amount of the discount. The terms 2/10, n/eom means that the buyer can take a 2% discount if they pay within 10 days of the end of the month (n/eom). So, the discount amount would be:

$8,000 x 2% = $160

Next, we need to subtract the return of merchandise from the invoice amount:

$8,000 - $1,000 = $7,000

Finally, we need to subtract the discount amount from the new amount:

$7,000 - $160 = $6,840

Therefore, the amount of cash received by the seller is $6,840, which corresponds to answer choice C.

A Sales Invoice Included the Following Information: Merchandise Price, $8,000;