On January 15, Concord Corporation sells merchandise on account to Martinez Associates for $7400 with terms 2/10, n/30. On January 20, Martinez returns merchandise worth $1200 to Concord. On January 24, payment is received from Martinez for the balance due. What is the amount of cash received

amount of cash received is $6076

Explanation:

given data

sells = $7400

terms = 2/10, n/30

to find out

amount of cash received

solution

date particulars amount

January 15 sale $7400

January 20 return $1200

net sale = sales - return $6200

January 24 payment is received 10th day

2% discount given i. e 6200 * 2% $124

January 24 amount of cash received $6076

= $6200 - $124