Question

Python Company sells merchandise on account for $5000 to Monte Company with credit terms of 2/10, n/30. Monte Company returns $1500 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check?

Answer 1

Answer:

amount of the check  =  $3430  

Explanation:

given data

sells merchandise account =  $5000

credit terms of 2/10, n/30

Company returns =  $1500

to find out

amount of the check

solution

we will find here amount of the check that is express here as

amount of the check =  (sells merchandise account -  Company returns) × (100 - n )    .......................1

put here value in equation 1 we get    

amount of the check  =  (5000 - 1500 ) × (100% - 2%)

amount of the check  =  (3500 ) × (98%)  

amount of the check  =  $3430