Step 1: 1000 - 200 = 800
Step 2: 800 x 0.02 = 16
Step 3: 800 - 16 = 784
Bag Company buys on account $1,000 of merchandise from Cart Company subject to terms 2/10 n/30 on Feb 1. On Feb 2 it returns $200 worth of merchandise for full credit. Bag pays its balance in full on Feb 5. Bag would write a cheque on Feb 5 for:
None of the above
$780
$1,000
$784
$800
I tried it on my own and got 780.. but the answer is 784.
1000x0.02=20, 1000-20=980, 980-200= 780.
1 answer