Kern Company sells merchandise on account for $8,000 to Block Company with credit terms of 2/10, n/30.Block Company returns $1,600 of merchandise that was damaged along with a check to settle the account within the discount period.What is the amount of the check?

Question

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The amount of the check is calculated by first subtracting the returned merchandise value from the original sale amount, then applying the discount. Original sale amount is $8,000, and $1,600 worth of merchandise is returned, leaving $6,400. The discount is 2% of $6,400, which is $128. Therefore, the amount of the check is $6,400 - $128 = $6,272.

Kern Company Sells Merchandise on Account for $8,000 to Block