On June 15,Oakley Inc.sells merchandise on account to Sunglass Hut (SH)for $1,000 terms 2/10,n/30.On June 20,SH returns to Oakley merchandise that SH had purchased for $300.On June 24,SH completely fulfills its obligation to Oakley by making a cash payment.What is the amount of cash paid by SH to Oakley?
A)$680.
B)$686.
C)$700.
D)$1,000.

Question

Quizplus · Accepted Answer

SH returns $300 of merchandise and then pays within the discount period.$1,000 - $300 = $700 * 2% = $14 discount.$700 - $14 = $686.