Question

Amy Company sold $8,000 of merchandise to Tory Turnbull with terms 2/10, n/30. If Tory paid for three-fourths of the merchandise within the discount period and one-fourth after the discount period, he paid a total of
A.$7,840
B.$7,880
C.$7,920
D.$7,960​

Answer 1

Answer:

Amy Company sold $8,000 of merchandise to Tory Turnbull with terms 2/10, n/30. If Tory paid for three-fourths of the merchandise within the discount period and one-fourth after the discount period, he paid a total of

$7,840

Answer 2

Answer:

The correct option is B - $7880

Explanation:

Here, Amy company sold goods (merchandise) to Tory Turnbull on a credit basis

Here term 2/10 means, Debtor received 2% discount when they paid amount within the 10 days of invoice

n/30 means discount allowed upto 30 days of invoice after that no discount will allowed to debtor.

As per condition

Debtor 3/4 within the discount period and 1/4th after discount period

So 3/4 of $ 8,000 = $6000

Here discount is 2% i.e, $6000 * 2% = $120

After discount the value is = $6000 - $120 = $5880

Remaining amount debtor has to paid in full no discount is allowed= $2000

Total amount paid by Debtor is $7880

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