Gammy Corporation provides services with a normal price of $800,000 and a trade discount of $100,000. Terms are 2/10, n/30 and the customers pay within 10 days. The net service revenue is:.

The net service revenue amounts to $686,000

Explanation:

The formula to compute the net service revenue is as:

Net Service Revenue = (Price - Trade discount) - Discount of 2%

where

Price is $800,000

Trade discount is $100,000

And the discount of 2%

Therefore,

NSR = ($800,000 - $100,000) -Discount of 2%

= $700,000 - 2% 0f $700,000

= $700,000 - $14,000

= $686,000

NOTE: The customer paid within 10 days so the customer is allowed for 2% discount on the amount.

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23