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21 November, 17:25

Hale Company sells merchandise on account for $1,000 to Long Company with credit terms of 2/10, n/30. Long Company returns $200 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check? a. $784b. $780c. $980d. $800

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  1. 21 November, 21:12
    0
    Amount of Check = $784

    so correct option is a. $784

    Explanation:

    given data

    Merchandise on account = $1,000

    Long Company returns = $200

    credit terms = 2/10

    n/30

    to find out

    What is the amount of the check

    solution

    we know here that Total Merchandise will be

    Total Merchandise = Merchandise on account - returns ... 1

    Total Merchandise = $1000 - $200

    Total Merchandise = $800

    and

    discount will be here

    Discount = 0.02 * 800

    returns = $16

    so

    Amount of Check will be as

    Amount of Check = Total Merchandise - Discount ... 2

    put here value

    Amount of Check = Total Merchandise - Discount

    Amount of Check = $800 - $16

    Amount of Check = $784

    so correct option is a. $784
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