Merchandise is sold for $5,600, terms 1/10, n/30. Prior to payment, the customer returned $360 of the merchandise. If the invoice is paid within the discount period the amount of the sales discount is:

Question

Quizplus · Accepted Answer

First, we need to calculate the net amount of the invoice after the return:

Net Amount = $5,600 - $360 = $5,240

Next, we need to calculate the amount of the discount:

Discount = Net Amount x Discount Rate
Discount = $5,240 x 1%
Discount = $52.40

Therefore, the sales discount amount is $52.40.

Merchandise Is Sold for $5,600, Terms 1/10, N/30