Goods totaling $14,000 purchased February 2 on terms of 2/10, n/30 and on which returns of $2,000 were made on February 10 would be subject to which of the following discounts if paid for on February 12?
240
To calculate the discount, we need to first find the net amount due.
Net amount due = Total amount – Returns
Total amount = $14,000
Returns = $2,000
Therefore,
Net amount due = $14,000 – $2,000 = $12,000
Now, we need to check if the payment is made within the discount period.
Discount period = 10 days
Invoice date = February 2
Payment made on = February 12
Number of days between February 2 and February 12 = 10 days
Since the payment is made within the discount period, the discount applies.
Discount = Discount rate x Net amount due
Discount rate = 2% (since terms are 2/10)
Therefore,
Discount = 2% x $12,000 = $240
The amount to be paid after discount = Net amount due – Discount
Amount to be paid after discount = $12,000 – $240 = $11,760
Therefore, if paid for on February 12, the goods purchased would be subject to a discount of $240 (2% of $12,000) and the amount to be paid would be $11,760.
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