Carson company on july 15 sells merchandise on account to tayler co. for $2,000, terms 2/10, n/30. on july 20 tayler co. returns merchandise worth $800 to carson company. on july 24 payment is received from tayler co. for the balance due. what is the amount of cash received?

The amount of cash received will be the net of discounts and sales returns.

Given,

the sales = $ 2,000

The sales return = $ 800

The discount will be allowed only if the payment is made within the discounts period i.e. 10 days. The sales were made in 15th July and Payment is made on 24th July, thus Carson company is eligible for the discount. The discount will be calculated on the sales net of returns

Net sales = $ 2,000 - $ 800 = $ 1200

Discount = 2 % X $ 1,200 = $ 24

The cash received = $ 2,000 - $ 800 - $ 24 = $ 1,176

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explanation:

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