On January 15, Nifty Company sells merchandise on account to Martinez Associates for $3,000 with terms 3/10, n/30. On January 20, Martinez returns merchandise worth $600 to Nifty. On January 24, payment is received from Martinez for the balance due. What is the amount of cash received?
A) $2,400
B) $2,328
C) $2,310
D) $1,680

Question

Quizplus · Accepted Answer

The original sale was $3,000. After a return of $600, the balance is $2,400. With terms 3/10, a 3% discount is applied if paid within 10 days. The discount on $2,400 is $72, so the cash received is $2,328.

On January 15, Nifty Company Sells Merchandise on Account to Martinez