question: Ball Company sells merchandise on account for $1,500 to Edds Company with credit terms of 2/10, n/30?
Ball Company sells merchandise on account for $1,500 to Edd's Company with credit terms of 2/10, n/30. Edd's Company returns $300 of merchandise damaged, along with a check to settle the account within the discount period. What is the amount of the check?
- anonymousLv 79 years agoFavorite Answer
After the return, Edd's company owes Ball Co. $1,200
Since they are paying within the discount period, Edd's can take 2% off the amount owed.
( $1,200 x 0.02) = $ 24
The check to settle the bill is in the amount of ( $ 1,200 - $ 24 ) = $ 1,176