Question

Concord Company sells merchandise on account for $5700 to Ivanhoe Company with credit terms of 2/10, n/30. Ivanhoe Company returns $1000 of merchandise that was damaged, along with a

check to settle the account within the discount period. What is the amount of the check?
$4700
$4606
$5586
$5606

Answer 1

The right solution is Option b ($4606 ).

Step-by-step explanation:

The given values are:

Company sells merchandise,

= $5700

Company returns,

= $1000

Now,

The amount of the check will be:

=
`(5700-1000)* 98 \ percent`

=
`(5700-1000)* 0.98`

=
`4700* 0.98`

=
`4606` ($)