A credit sale of $800 is made on April 25, terms 2/10, n/30, on which a return of $50 is granted on April 28. What amount is received as payment in full on May 4?

Question

Quizplus · Accepted Answer

The original sale is $800, with a $50 return, reducing the amount to $750. The terms 2/10, n/30 mean a 2% discount is available if paid within 10 days. Since payment is made on May 4, within the discount period, the discount is 2% of $750, which is $15. Therefore, the payment received is $750 - $15 = $735.

A Credit Sale of $800 Is Made on April 25