Abe Company sold merchandise on credit to Bee Company for $1,000 on July 1,with terms of 2/10,net /30.On July 6,Bee returned $200 worth of merchandise claiming the materials were defective.On July 8,Abe received a payment from Bee and credited Accounts Receivable for $350.On July 24,Bee Company paid the remaining balance on its account.
-See Abe Company information above.What was the total cash received from Bee during July?

Question

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The total cash received from Bee during July is calculated as follows: Initially, Bee owed $1,000. After returning $200 worth of merchandise, the balance owed became $800. On July 8, Bee took advantage of the 2% discount on the remaining $800 by paying within the discount period (2/10, net 30), so they paid $784 (98% of $800). The payment of $350 on July 8 was a partial payment towards this discounted amount, leaving a balance of $434 ($784 - $350). On July 24, Bee paid the remaining balance of $434. Therefore, the total cash received is $350 (July 8) + $434 (July 24) = $784.

Abe Company Sold Merchandise on Credit to Bee Company for $1,000