Simmons sold merchandise to Drake for $5,000 with payment terms of 2/10, n/30. Two days later, Drake returned two of the units and received account credit in the amount of $2,000. If Drake pays his account in full within ten days of the invoice date, what is the amount of the sales discount?

Question

Business

Diana Gross

22 July, 07:46

Simmons sold merchandise to Drake for $5,000 with payment terms of 2/10, n/30. Two days later, Drake returned two of the units and received account credit in the amount of $2,000. If Drake pays his account in full within ten days of the invoice date, what is the amount of the sales discount?

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Harmony · Answer 1

the discount is for 60 dollars

therefore Simmons will pay 2,940 dollar for the inventory

Explanation:

From the invoice nominal we should remove the returned goods.

nominal 5,000

returns 2,000

balance: 3,000

commercial terms: 2/10 the discount is 2% if paid within 10 days

3,000 x 2% = 60 dollars

net cash disbursements: 3,000 - 60 = 2,940 dollars