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Given the following information, compute the amount of cash remitted by the customer on February 21.

Feb. 14 - Sale on credit, terms of 1/15, n/30 - $12,000

Feb. 19 - AIIowance granted due to some items being damaged - $600

Feb. 21 - Payment in full received from the customer - $?

A) $11,996.

B) $12,000.

C) $11,286.

D) $11,400.

pur-new-sol

Correct answer: Option C) $11,286.

Explanation:

Payment received from customer = Sale value - Allowance granted due to damage - Cash discount
Payment received from customer = $12,000 - $600 - $114
Payment received from customer = $11,286

Note:

The discount is given as the customer paid within 15 days.

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