Juan sells $75,000 of TVs to a customer.The credit terms state a 2% discount if paid in 7 days and a 1% discount if paid in 8-14 days.The customer pays in 12 days.How much cash does Juan receive?
A)$75,000
B)$73,500
C)$74,250
D)$1,500

Question

Quizplus · Accepted Answer

The customer paid in the 8-14 day discount period and,as such,is entitled to a 1% discount in the amount of $750 (or $75,000 × 0.01).The debit to Cash equals $74,250 (or $75,000 − $750).

Juan Sells $75,000 of TVs to a Customer