A credit saleof $800.00 is made on April 25th, terms 2/10, n/30, on which return of $50.00 is granted on April 28th. What amount is received as payment in full on May 4th?
To determine the amount received as payment in full on May 4th, we need to calculate the net amount due after considering any discounts and returns.
Step 1: Calculate the discount for early payment (2/10):
The terms "2/10" mean that if the payment is made within 10 days, a 2% discount can be availed. So, there will be a discount of 2% on the amount of the sale ($800).
Discount = 2% of $800
Discount = 0.02 * $800
Discount = $16
Step 2: Calculate the net amount due after discount:
The net amount due after the discount is the sale amount minus the discount.
Net amount due = Sale amount - Discount
Net amount due = $800 - $16
Net amount due = $784
Step 3: Consider the return granted:
A return of $50 was granted, meaning that the customer returned $50 worth of goods. So, this needs to be subtracted from the net amount due.
Net amount due after return = Net amount due - Return
Net amount due after return = $784 - $50
Net amount due after return = $734
Therefore, the amount received as payment in full on May 4th is $734.