On June 1,2016,merchandise subject to terms 2/10,n/30 was sold on account to a customer for $26,500.On June 3,the seller issued a credit memorandum for $5,800,accepting merchandise returned by the customer.This was prior to payment by the customer.
a)What is the amount of cash collected by the seller if the payment is made by the customer on June 8,2016?
b)What is the amount of cash collected by the seller if payment is made by the customer on June 21,2016?

Question

Quizplus · Accepted Answer

The Answer is a)($26,500 - $5,800)* .98 = $20,286
b)$26,500 - $5,800 = $20,700

On June 1,2016,merchandise Subject to Terms 2/10,n/30 Was Sold on Account