Ayala Company sells merchandise on account for $9000 to Verde Company with credit terms of 2/10 n/30. Verde Company returns $1500 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

Verde Company initially owes $9000. After returning $1500 of damaged merchandise, the amount owed is reduced to $7500. With a 2% discount for early payment, the discount amount is $7500 * 0.02 = $150. Therefore, the amount of the check is $7500 - $150 = $7350.

Ayala Company Sells Merchandise on Account for $9000 to Verde