A credit sale of $3600 is made on July 15 terms 3/10 n/30 on which a return of $100 is granted on July 18. What amount is received as payment in full on July 24?

Question

Quizplus · Accepted Answer

The net amount due on the sale is calculated as follows:

Sale amount = $3600
Less: Return = $100
Net amount due = $3500

Since the terms are 3/10, the customer is entitled to a 3% discount if payment is made within 10 days. Therefore, the amount due if paid within 10 days is:

Net amount due = $3500
Less: 3% discount = $105
Amount due if paid within 10 days = $3395

Since the customer did not pay within 10 days, the full amount of $3500 is due within 30 days. Therefore, the amount received on July 24 must be $3500. Any other amount would not be payment in full.

Therefore, the answer is A) $3395.

A Credit Sale of $3600 Is Made on July 15