,, . , 4. RuWh SmartArt, ann { } A company sells merchandise to a customer with
ID: 2576376 • Letter: #
Question
,, . , 4. RuWh SmartArt, ann { } A company sells merchandise to a customer with terms of 2/10, net 30. The customer ALWAYS pays during the discount period. The customer buys 400 tables at $ 250 per table. They return 20 tables for full credit and in addition get an additional allowance on the remaining tables of $ 20 per table. What is the amount of the check the customer will ean they pay the invoice A. $ 85,652 B. $87,400 C. $ 93,100 D. $ 86,475 E. None of the above 0% ..0% 0% 0% 0% -- s sNone 85,652 87,400 93,100 86,475 of the above ·f6 FS F7Explanation / Answer
Select - Option - A ...........85652 as correct answer
400 tables were sold but 20 were returned, so effective = 380 tables sold.
Agreed price = 250 but allowance for discount = 20 .........so net effective selling price = 230
Thus amount due from the customer = 380 tables * 230 = 87400
When this amount is paid within the discount period ............ we have to allow discount = 87400 * 0.02 = 1748
Thus amount paid = 87400 - 1748 = 85652
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