A credit sale of $4,000 is made on April 25, terms 2/10, n/30, on which a return of $250 is granted on April 28. What amount is received as payment in full on May 4?

Question

Quizplus · Accepted Answer

The original sale amount is $4,000. A return of $250 is granted, reducing the amount to $3,750. The payment is made within the discount period (2/10), so a 2% discount is applied to $3,750, resulting in a discount of $75. Therefore, the payment received is $3,750 - $75 = $3,675.

A Credit Sale of $4,000 Is Made on April 25