After the amount due on a sale of $22,600, terms 1/10, n/eom, is received from a customer within the discount period, the seller consents to the return of the entire shipment for a cash refund. The cost of the merchandise returned is $13,560. a. What is the amount of the refund owed to the customer?

$22,374

Explanation:

With terms of of 1/10 n (unclear), it means that the customer paid their dues within 10 days and were liable for a sales discount of 1%.

The amount of refund that the customer should get is therefore what they paid which is 1% less than the full amount.

Calculating for that then will be,

= Amount due *(1-discount rate)

= 22,600 * (1 - 0.01)

= $22,374

$22,374 is the amount due for refund.

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