Analyzing purchase transactions—perpetual inventory [5-10 min]
Suppose KC Toys buys $185,800 worth of MegoBlock toys on credit terms of 2/10, n/30. Some of the goods are damaged in shipment, so KC Toys returns $18,530 of the merchandise to MegoBlock.
Requirement
1. How much must KC Toys pay MegoBlock.
a. after the discount period?
b. within the discount period?
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