25. arcos sales invoice dated august 12 in the amount of $4,000 had terms of 2/10, net 30. the customer…

25. arcos sales invoice dated august 12 in the amount of $4,000 had terms of 2/10, net 30. the customer reported that some of the items were defective. in response, arco issued a $500 credit memo. what amount should arco expect to receive if the customer pays the amount owed on august 20? select... $3,430 $3,420 $3,500 $3,920

25. arcos sales invoice dated august 12 in the amount of $4,000 had terms of 2/10, net 30. the customer reported that some of the items were defective. in response, arco issued a $500 credit memo. what amount should arco expect to receive if the customer pays the amount owed on august 20? select... $3,430 $3,420 $3,500 $3,920

Answer

Explanation:

Step1: Calculate net - amount after credit memo

The original invoice amount is $4000$ and the credit memo amount is $500$. So the net - amount due before discount is $4000 - 500=3500$.

Step2: Determine if discount applies

The terms are 2/10, net 30, which means a 2% discount if paid within 10 days. The invoice is dated August 12 and the customer pays on August 20, which is within 10 days.

Step3: Calculate the amount received

The amount received is the net - amount after credit memo minus the discount. The discount is $3500\times0.02 = 70$. So the amount received is $3500-70 = 3430$.

Answer:

$3430$