Question

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.

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.

Answer 1

Notes:
	Merchandise sold subect to terms 2/10, n/30 means there is 2% of cash discount
	if the payment is made within 10 days from sales and normal credit period for
	payment is 30 Days
	Sale made on April 01, 2020
	Paymet Is made as on 08th April it means customer is eligible for discount
Solution:
	Calculation of amount of cash is required to pay by customer:
	Sales to Customer	$27,000
	Less : Sales return	$8,000
	Net Receivable from customer	$19,000
	Less: Cash discount for timely payment ($ 19,000 X 2 %)	$380
	Net Cash payable by customer	$18,620
	Answer = Option B = $ 18,620