A company purchased $1,800 of merchandise on December 5.On December 7,it returned $200 worth of merchandise.On December 8,it paid the balance in full,taking a 2% discount.The amount of the cash paid on December 8 is:
A)$200.
B)$1,564.
C)$1,568.
D)$1,600.
E)$1,800.

Question

Quizplus · Accepted Answer

The company originally purchased $1,800 worth of merchandise on December 5. On December 7, they returned $200 worth of merchandise, leaving them with a balance of $1,600 ($1,800 - $200 = $1,600). 
Since they paid the balance on December 8 and took a 2% discount, the amount of cash paid would be 98% of $1,600. 
98% of $1,600 = 0.98 x $1,600 = $1,568. 
Therefore, the answer is choice C, $1,568.

A Company Purchased $1,800 of Merchandise on December 5