Nash's Trading Post, LLC on July 15 sells merchandise on account to Tayler Co. for $2800, terms 1/10, n/30. On July 20 Tayler Co. returns merchandise worth $1000 to Nash's Trading Post, LLC. On July 24 payment is received from Tayler Co. for the balance due. What is the amount of cash received?

Question

Business

Swiss Miss

25 March, 21:37

Nash's Trading Post, LLC on July 15 sells merchandise on account to Tayler Co. for $2800, terms 1/10, n/30. On July 20 Tayler Co. returns merchandise worth $1000 to Nash's Trading Post, LLC. On July 24 payment is received from Tayler Co. for the balance due. What is the amount of cash received?

+4

Answers (1)

Know the Answer?

Tootsie · Answer 1

Cash received 1,782

Explanation:

Sales Revenue 2,800

Return Goods 1,000 (customer return goods for this amount)

Sales after return 1,800 (original value less returns)

payment is due within discount period.

The terms are 1% discount within the first 10 days The payment is done at July 24th. Which is the nineth day.

1% discount of 1,800 = 18

Cash receipts 1,800 sale - 18 discounts = 1,782