Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 5 - Merchandising Operations and the Multiple-Step Income Statement - Self-Test Questions: 4

Answer

b

Work Step by Step

After the return, the amount of the sale is \$700. Since the invoice was paid in 10 days, the terms allow a 2% discount. The amount paid is $700\times0.98=686$.
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