Carson Company on July 15 sells merchandise on account to Tayler Co.for $3,000, terms 2/10, n/30.On July 20, Tayler Co.returns merchandise worth $1,200 to Carson Company.On July 24, payment is received from Tayler Co.for the balance due.What is the amount of cash received?
A)$1,800
B)$1,764
C)$1,740
D)$3,000

Question

Quizplus · Accepted Answer

The original sale was $3,000 with a return of $1,200, leaving a balance of $1,800. Tayler Co. pays within the discount period (2/10), so they receive a 2% discount on the $1,800, which is $36. Therefore, the cash received is $1,800 - $36 = $1,764.

Carson Company on July 15 Sells Merchandise on Account to Tayler