A credit sale of $1,800 is made on July 15, terms 2/10, 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 discount period ended on July 25 (10 days after the invoice date of July 15). Since payment was made on July 24, the customer is entitled to a 2% discount. The amount of the discount is $1,800 x 2% = $36. The amount received as payment in full is $1,800 - $36 = $1,764.

A Credit Sale of $1,800 Is Made on July 15