A company purchased $9,500 of merchandise on June 15 with terms of 3/10, n/45. On June 20, it returned $475 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it was entitled to. The cash paid on June 24 equals:

Question

Business

Stanley Johnson

2 April, 07:37

A company purchased $9,500 of merchandise on June 15 with terms of 3/10, n/45. On June 20, it returned $475 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it was entitled to. The cash paid on June 24 equals:

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Answers (1)

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Elizabeth Vazquez · Answer 1

The cash paid on June 24 is $8,754.25

Explanation:

The computation of the cash paid is shown below:

= (Merchandise purchase - returned goods) * (1 - discount rate)

= ($9,500 - $475) * (1 - 0.03%)

= $9,025 * 0.97

= $8,754.25

Since the company paid the amount within the discount period, so it can avail the discount benefit.

We deduct the discount rate from 1 as the percentage value is 100 so that accurate value can come.