Connor Company sells merchandise for $2,000 on account to Market Industries on January 21, at 1/10, n/30, Invoice 190. Market returns $200 of the merchandise on January 23, receiving credit memorandum 120 from Connor. What amount would Market pay if they submit payment on January 29?

The amount of $1,782 would be paid by market

Explanation:

The amount which is to be paid by market if they submit the payment on January 29 is computed as:

Remaining balance = Worth of sold merchandise - Return goods worth

where

Worth of sold merchandise is $2,000

Return goods worth is $200

So,

Remaining balance to be paid = $2,000 - $200

Remaining balance to be paid = $1,800

And the payment is made on January 29, which is within the discount period duration as the duration is of 10 days and if paid within the time period then will be allowed 1% discount on amount.

Therefore,

Amount to be paid = Remaining balance to be paid - (1% on Remaining balance)

= $1,800 - (1% × $1,800)

= $1,800 - $18

Amount to be paid = $1,782

the answer is account d

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