Question

Z-Mart completes a $10,000 credit sale with terms of 2/10, n/45. If the buyer pays within discount period, Z-mart should debit the sales discount account for $ ________.

Answer 1

Answer:

$ 200

Explanation:

Data provided in the problem :

Credit sales amount = $ 10,000

Terms = 2/10

i.e the return period is 10 days

discount rate is 2%

since, the buyer pays within the discount period

thus,

the debit the sales discount account = discount rate × Credit sales

or

the debit the sales discount account = 0.02 × $ 10,000 = $ 200