a company purchased $2,000 of merchandise on july 5 with terms 1/10, n/30. on july 7, it returned $220 worth…

a company purchased $2,000 of merchandise on july 5 with terms 1/10, n/30. on july 7, it returned $220 worth of merchandise. on july 8, it paid the full amount due. the amount of the cash paid on july 8 equals: $2,000. $1,760. $1,762. $1,780. $220.

a company purchased $2,000 of merchandise on july 5 with terms 1/10, n/30. on july 7, it returned $220 worth of merchandise. on july 8, it paid the full amount due. the amount of the cash paid on july 8 equals: $2,000. $1,760. $1,762. $1,780. $220.

Answer

Explanation:

Step1: Calculate net - purchase amount

The initial purchase is $2000 and the return is $220. So the net - purchase amount is $2000 - 220=1780$.

Step2: Apply discount

The terms 1/10, n/30 mean a 1% discount if paid within 10 days. The payment is made on July 8 (within 10 days of July 5), so the discount amount is $1780\times0.01 = 17.8$.

Step3: Calculate cash paid

The cash paid is the net - purchase amount minus the discount, which is $1780-17.8 = 1762.2\approx1762$.

Answer:

$1762$