During the month of April, Caroline sold $6,000 worth of products to one of her customers. Once the items arrived, her customer realized that some merchandise had been damaged, and the customer promptly returned $1,800 worth of products. Caroline has offered her terms of 3/10, net 30, with an agreement that Caroline will assume responsibility for shipping charges. Caroline has incurred the overall shipping cost of $150 that she paid up front. If the customer pays within the discount period, what is the overall amount that Caroline will be able to collect from her customer during April?

Question

Quizplus · Accepted Answer

To arrive at the correct total, you must use the following formula: (Sales F1F1F1S1?F1F1F10 Returns) × (1 F1F1F1S1?F1F1F10 Discount Rate). The shipping costs will not be added to the total as that will be paid by Caroline. $4,074 is the only choice that appropriately applies the formula: ($6,000 F1F1F1S1?F1F1F10 $1,800) × 0.97.

During the Month of April, Caroline Sold $6,000 Worth of Products