A credit sale of ₤1,600 is made on April 25, terms 2/10, n/30, on which a return of ₤100 is granted on April 28.What amount is received as payment in full on May 4?

Question

Quizplus · Accepted Answer

The net amount due on the sale is ₤1,600 - ₤100 = ₤1,500. 
If the customer takes advantage of the discount, they will pay ₤1,500 x 0.98 = ₤1,470. 
If the customer does not take advantage of the discount, they will pay the full amount of ₤1,500 on or before May 25. 
Since the payment is received on May 4 and it is less than the full amount due, it must be the discounted amount of ₤1,470. Therefore, the correct answer is (A) ₤1,470.

A Credit Sale of ₤1,600 Is Made on April 25