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31 May, 09:41

Crane Company sells merchandise on account for $6000 to Blossom Company with credit terms of 1/10, n/30. Block Company returns $1400 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check

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  1. 31 May, 09:44
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    The amount of check is $4,554

    Explanation:

    Term 1/10, n/30 means there is a discount of 1% is available on payment of due amount within discount period of 10 days after sale and net credit period of 30 days.

    According to given data

    Sales = $6,000

    Returns = $1,400

    Amount due = $6000 - $1,400 = $4,600

    As the payment is made within discount period, so discount will be availed

    Discount = $4,600 x 1% = $46

    Amount of Check = $4,600 - $46 = $4,554
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Home » Business » Crane Company sells merchandise on account for $6000 to Blossom Company with credit terms of 1/10, n/30. Block Company returns $1400 of merchandise that was damaged, along with a check to settle the account within the discount period.
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