A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 28, it paid the full amount due. The amount of the cash paid on July 28 equals:

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The company purchased $1,800 and returned $200, leaving a balance of $1,600. Since the payment was made after the discount period, no discount is applied, so the full amount of $1,600 is paid.

A Company Purchased $1,800 of Merchandise on July 5 with Terms