Question

Q 5.34: A wholesaler offers credit terms 1/10, n/30. A fabric store bought goods worth $6,500 from the wholesaler. Within the discount period, the fabric store returned defective goods worth $300 and paid the amount owed. How much did the wholesaler receive as payment

Answer 1

the wholesaler received $6,138 as payment.

Step-by-step explanation:

The seller would receive the the amount owing to customer less the return credit and cash discount of 1 %.

The calculation of this amount is as follows :

Account Receivable $6,500

Less Return Credit ($300)

$6,200

Less Cash discount ($6,200 × 1%) ($62)

Payment $6,138

Conclusion :

the wholesaler received $6,138 as payment.