Asked by Gurleen Kaur Sidhu on Jun 28, 2024
Verified
On July 28,it paid the full amount due.The amount of the cash paid on July 28 equals:
A) $200.
B) $1,564.
C) $1,568.
D) $1,600.
E) $1,800.
Cash Payment
A transaction in which a payment is made in the form of physical currency or through a digital mechanism but representing immediate transfer of funds.
Merchandise
Goods or products that are bought and sold by businesses in the course of their trade or business operations.
- Recognize and comprehend the elements and importance of final inventory.
Verified Answer
AZ
Anastasiia ZotovaJun 30, 2024
Final Answer :
D
Explanation :
The company initially purchased $1,800 of merchandise. After returning $200 worth of merchandise, the total amount due becomes $1,800 - $200 = $1,600. Since the payment was made after the discount period (2/10), no discount applies, and the full amount of $1,600 is due.
Learning Objectives
- Recognize and comprehend the elements and importance of final inventory.