Ask Question
BusinessBusiness
17 December, 08:20

Sheridan Company sells merchandise on account for $6400 to Carla Vista Company with credit terms of 2/10, n/30. Block Company returns $1800 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check

+2
Answers (1)
  1. 17 December, 09:57
    0
    Answer: $4,508

    Explanation:

    Companies usually give discounts with credit terms to encourage Receivables to pay faster.

    In this scenario, credit terms of 2/10, n/30 were offered which means that if Carla Vista Company pays within 10 days they get a discount of 2% but if they don't they should pay the full amount in 30 days.

    They paid within the discount period meaning that they qualify for the discount of 2% but they however returned goods worth $1800.

    So calculating for that would be,

    = (6,400 - 1800) (1 - 0.02)

    = $4,508

    The amount of the check is $4,508
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Sheridan Company sells merchandise on account for $6400 to Carla Vista Company with credit terms of 2/10, n/30. Block Company returns $1800 ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Tina withdraws $20,000 from her money market account to start up her own house cleaning business. The account earns 3 percent interest. In order to properly account for all costs of her business, Tina must not forget:
Answers (1)
Which type of organization means that there are few or no levels of managers in between the top people who run the company and the employees? A. Flat organization B. Hierarchical organization C. Matrix organization D. Functional organization
Answers (2)
Determine which moral standard of social responsibility the business is observing. Meg's company decided to build an additional factory in a small community.
Answers (2)
Michael Barry, Attorney, P. C. began the year with total assets of $126,000, liabilities of $74,000, and stockholders' equity of $52,000. During the year, the business earned revenue of $110,000 and paid expenses of $33,000.
Answers (1)
Identify ALL of the data dependencies in the following code. Which dependencies are data hazards that can be resolved by forwarding? For each irresolvable data hazard, how many pipeline stalls will occur and in which instruction?
Answers (1)
New Questions in Business
Suppose that a worker in Freedonia can produce either 6 units of corn or 2 units of wheat per year, and a worker in Sylvania can produce ei ther 2 units of corn or 6 units of wheat per year. Each nation has 10 workers.
Answers (1)
How can business taxes positively affect an economy? A If taxes are low, more businesses can be created. B If taxes are low, then businesses will give more of their earnings away.
Answers (1)
Assume Joe Harry sells his 25% interest in Joe's S Corp., Inc. to Tyrone on January 29. Using the daily allocation method, how much income does Joe Harry report if Joe's S Corp., Inc.
Answers (1)
Whirlwind Financial Corporation sends its executives to a resort in Mexico-at taxpayer's expense-to consider using the firm's cash to buy back its stock and thereby prop up the value. Many of its competitors are doing the same thing.
Answers (1)
LO 7.2Rehydrator makes a nutrition additive and expects to sell 3,000 units in January, 2,000 in February, 2,500 in March, 2,700 in April, and 2,900 in May.
Answers (1)
Home » Business » Sheridan Company sells merchandise on account for $6400 to Carla Vista Company with credit terms of 2/10, n/30. Block Company returns $1800 of merchandise that was damaged, along with a check to settle the account within the discount period.
Sign Up Forgot Password?