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A credit sale of $750 is made on June 13, terms 2/10, net/30. A return of $50 is granted on June 16. The amount received as payment in full on June 23 is: a) $650 b) $700 c) $685 d) $686.

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Answer:

D. $686

Explanation:

Given that

Credit sale = 750

Return = 50

Terms 2/10

Amount received in full therefore,

= [(750 - 50) - (750 - 50 {2%})]

= 700 - (700 × 0.02)

= 700 - 14

= $686

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