A credit sale of $700 is made on July 15, terms 2/10, net/30, on which a return of $50 is granted on July 18. What amount is received as payment in full on July 24?
A) $700
B) $637
C) $650 d $686

Question

Quizplus · Accepted Answer

The original sale is $700, with a $50 return, making it $650. The terms 2/10 mean a 2% discount is available if paid within 10 days. The payment is made on July 24, within the discount period, so the discount is $650 * 2% = $13. Therefore, the payment received is $650 - $13 = $637.

A Credit Sale of $700 Is Made on July 15