Thursday, December 15, 2011

What is the cash required if the payment is within the discount period?

Wilder and company purchased merchandise on account from a supplier for $7,500, terms 2/10, n/30. Wilder company returned $1,500 of the merchandise and received full credit.





QUESTION: What is the cash required if the payment is within the discount period??





a) 120


b) 1500


c) 5880


d) 7500|||C. Since a credit was issued for 1500, that leaves a balance of $6000 due.


98% of 6000 is 5880

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