On June 15, Oakley Inc. sells inventory on account to Sunglass Hut (SH) for $9,0
ID: 2598516 • Letter: O
Question
On June 15, Oakley Inc. sells inventory on account to Sunglass Hut (SH) for $9,000, terms 1/10, n/30. On June 20, SH returns to Oakley inventory that SH had purchased for $1,900. On June 24, SH completely fulfills its obligation to Oakley by making a cash payment. What is the amount of cash paid by SH to Oakley?
$7,010.
$9,000.
$7,029.
$7,100.
On June 15, Oakley Inc. sells inventory on account to Sunglass Hut (SH) for $9,000, terms 1/10, n/30. On June 20, SH returns to Oakley inventory that SH had purchased for $1,900. On June 24, SH completely fulfills its obligation to Oakley by making a cash payment. What is the amount of cash paid by SH to Oakley?
Explanation / Answer
Date of sale 15-Jun Amount $9,000.00 Less: returns $1,900.00 Net amount due $7,100.00 Terms 1/10, n/30 Payment Date 24-Jun Amount is paid after 9 Days (24-Jun less 15-Jun) Hence discount of 1% will be allowed Net amount payable $7,029.00
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