Acompany purchased $2,100 of merchandise on july 5 with terms 2/10, n/30. on july 7, it returned $230 worth of merchandise. on july 8, it paid the full amount due. the amount of the cash paid on july 8 equals:

$1,832.6

Explanation:

Data provided in the question:

Cost of merchandise purchased = $2,100

Terms = 2/10, n/30

Cost of the merchandise returned = $230

Now,

The Amount of merchandise actually purchased

= Cost of merchandise purchased - Cost of the merchandise returned

= $2,100 - $230

= $1,870

also,

Amount of discount = 2% of Amount of merchandise actually purchased

= 0.02 × $1,870

= $37.4

Therefore,

The amount of the cash paid on July 8

= Amount of merchandise actually purchased - Amount of discount

= $1,870 - $37.4

= $1,832.6

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