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On April 1, 2020, merchandise subject to terms 2/10, n/30 was sold on account to a...

On April 1, 2020, merchandise subject to terms 2/10, n/30 was sold on account to a customer for $27,000. On April 4, the customer returned $8,000 of the goods and the seller issued a credit memorandum for that amount. This return occurred prior to payment by the customer.

13. What is the amount of cash required to be paid by the customer if payment is made on April 8, 2020?

a. $ 18,460.
b. $ 18,620.
c. $ 19,000.
d. $ 27,000.


14. What is the amount of cash required to be paid by the customer if payment is made on April 21, 2020?

a. $ 18,620.
b. $ 19,000.
c. $ 26,460.
d. $ 27,000.

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Homework Answers

Answer #1

13)

Answer:

Correct option is b. $18620.

Explanation:

Amount due = $27000

Less: Inventory Return = $8000

Net Amount due = $19000

Customer paid with in the Discounting period so he will avail 2% discount.

Discount = $19000 x 2% = $380

Net Cash Required for payment = $19000 - $380 = $18620.

14)

Answer:

Correct option is b. $19000.

Explanation:

Amount due = $27000

Less: Inventory Return = $8000

Net Amount due = $19000

Customer paid after the Discounting period so he will not avail 2% discount.

Cash Required for payment as on April 21 = $19000.

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