A credit sale of $2700 is made on July 15, terms 2/10, n/30, on which a return of $200 is granted on July 18. What amount is received as payment in full on July 24?

$2,450 is received as payment in full on July 24

Explanation:

Terms 2/10, n/30 means that there is a discount of 2% available if the payment is made within 10 days of sale with credit period of 30 days. Discount will only be given on the amount of payment which will be net of sales and return.

Credit Sale = $2,700

Sale Return = $200

Net Receivable = $2,700 - $200 = $2,500

Payment is made within the discount period, so the the discount will be availed on the due amount.

Discount = 2,500 x 2% = 50

Payment Receipt = $2,500 - $50 = $2,450

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