Question

On Jan/13th , firm ABC sold on account $5,000 in merchandise with terms of sale of...

On Jan/13th , firm ABC sold on account $5,000 in merchandise with terms of sale of 2/8; n/eom. If two days after the buyer returned $3,500 of the merchandise purchased, what is the amount of discount?

a.$50

b.$100

c.$70

d.$30

When is the last day the buyer can pay to receive the discount on the previous question?

a. 01/21st

b. 01/30th

c. 01/31st

d.01/15th

Business   Accounting   
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Homework Answers

Answer #1

Part 1

Sales = $5,000

Sales returns = $3,500

final amount due = Sales - Sales returns

= 5,000-3,500

= $1,500

Discount rate = 2%

Discount amount = final amount due x Discount rate

= 1,500 x 2%

= $30

Correct option is d.

Part 2.

Date of sale = 13 January

Terms = 2/8 , n/eom

2% discount is allowed if payment is made within 8 days. Last date to receive discount = 21 January

Correct option is a.01/21st

Kindly give a positive rating if you are satisfied with this solution and please ask if you have any query.

Thanks

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