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5 December, 10:57

Novak Corp. sells merchandise on account for $3400 to Borth Company with credit terms of 2/15, n/30. Borth Company returns $300 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check

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  1. 5 December, 11:45
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    The amount of check is $3,038

    Explanation:

    Credit terms of 2/15, n/30 means there is a discount of 2% is available on payment of due amount within discount period of 15 days after sale with net credit period of 30 days.

    According to given data

    Sales = $3,400

    Returns = $300

    Amount due = $3,400 - $300 = $3,100

    As the payment is made within discount period, so discount will be availed

    Discount = $3,100 x 2% = $62

    Amount of Check = $3,100 - $62 = $3,038
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Home » Business » Novak Corp. sells merchandise on account for $3400 to Borth Company with credit terms of 2/15, n/30. Borth Company returns $300 of merchandise that was damaged, along with a check to settle the account within the discount period.
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