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?

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  • 9 years ago
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    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

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