On June 1, merchandise subject to terms 2/10, n/30 was sold on account to a customer for $26,500. On June 3, the customer returns $5,800 of that merchandise.a) What is the amount of cash collected by the seller if the payment is made by the customer on June 8?b) What is the amount of cash collected by the seller if payment is made by the customer on June 21?
What will be an ideal response?
a) $20,286
b) $20,700
a) Cash collected if payment is made on June 8 (within the discount period) = ($26,500 - $5,800) × 0.98 = $20,286
b) Cash collected if payment is made on June 21 (after the discount period had ended) = $26,500 - $5,800 = $20,700
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