Tamarisk, Inc. sells merchandise on account for $7400 to Cheyenne Corp. with credit terms of 2/15, n/30. Cheyenne Corp. returns $1700 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check

   Bank                                                       $5586  

Explanation:

In the books of Tamarisk Inc

Sr. No                Particulars                          Debit          Credit

1                        Accounts Receivable        $ 7400

                             Sales                                                $ 7400

2              Sales                                 $ 7400

                     Sales Returns                                       $ 1700

                     Sales Discount                                         $ 144

                      Bank                                                       $5586  

WORKING:

The amount of Check

Credit Sales Less Sales Returns= $ 7400- $ 1700= $ 5700

Sales Discount =2% of Credit Sales= 2% of $ 5700= $ 114

Bank Amount = Credit Sales less Sales Discount= $ 5700- $ 114= $ 5586

answer; conceptual skills;