Asked by Saatvic Arora on Apr 26, 2024
Verified
On July 8,it paid the full amount due.The amount of the cash paid on July 8 equals:
A) $200.
B) $1,564.
C) $1,568.
D) $1,600.
E) $1,800.
Merchandise
Products that a company buys to resell to its customers.
Cash Paid
The actual outflow of cash during a period for expenses, investments, and other financial activities.
- Observe and perceive the components and consequence of ending inventory.
Verified Answer
KS
Kevin StudioApr 28, 2024
Final Answer :
C
Explanation :
The company has a discount of 2% if they pay within 10 days. Since they paid on the 3rd day, they are eligible for the discount.
The original amount due is $1,800. The return of $200 brings down the amount to $1,600.
The company is eligible for a 2% discount, which is $32 ($1,600 x 0.02). Therefore, the amount paid on July 8 is $1,568 ($1,600 - $32).
Therefore, the answer is choice C, $1,568.
The original amount due is $1,800. The return of $200 brings down the amount to $1,600.
The company is eligible for a 2% discount, which is $32 ($1,600 x 0.02). Therefore, the amount paid on July 8 is $1,568 ($1,600 - $32).
Therefore, the answer is choice C, $1,568.
Learning Objectives
- Observe and perceive the components and consequence of ending inventory.