Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / Metlock, Inc
Metlock, Inc. sells $2200 of merchandise on account to Baltic Company with credit terms of 2/9, n/30. If Baltic Company remits a check taking advantage of the discount offered, what is the amount of Baltic Company's check?
|
2200 |
|
$2081 |
|
$2156 |
|
$2002 |
Answer - C $2156
If Batlic company takes advantage of discount offered then it it should pay the amount after reducing discount.
In the given case , if Batlic company pays before 9 days then it is eligible for a discount of 2% on purchases made from Metlock,Inc.
So, amount to be paid if Batlic company takes advantage and the amount before 9 days
= $ 2200 - ($2200*2%)
= $2200- $44
= $2156
