Ball Company sells merchandise on account for ₤2,000 to Edds Company with credit terms of 2/10, n/30.Edds Company returns ₤400 of merchandise that was damaged, along with a check to settle the account within the discount period.What is the amount of the check?

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The original sale was ₤2,000. Edds Company returned ₤400 of damaged merchandise, reducing the amount owed to ₤1,600. The credit terms of 2/10, n/30 offer a 2% discount if paid within 10 days. The discount on ₤1,600 is ₤32 (2% of ₤1,600), so the amount of the check is ₤1,600 - ₤32 = ₤1,568.

Ball Company Sells Merchandise on Account for ₤2,000 to Edds