Beckett Co. sold merchandise on account for $12,200, terms 2/10, n/30. Freight charges of $400 were prepaid by the seller and added to the invoice. The customer returned $1,000 of merchandise before making the payment then paid the invoice within the discount period. What is the amount Beckett Co. received?

Question

Quizplus · Accepted Answer

The first step is to calculate the net sales by subtracting the return from the original sale:
$12,200 - $1,000 = $11,200

Next, we need to subtract the discount. The discount is 2% of $11,200, which is:

$11,200 x 0.02 = $224

So the discounted amount is:

$11,200 - $224 = $10,976

Finally, we need to add back the prepaid freight charges:

$10,976 + $400 = $11,376

Therefore, the amount Beckett Co. received is $11,376. Thus, the answer is B.