Syfy Company on July 15 Sells Merchandise on Account to Eureka

question 111

Multiple Choice

Syfy Company on July 15 sells merchandise on account to Eureka Co. for $5,000, terms 2/10, n/30. On July 20 Eureka Co. returns merchandise worth $2,000 to Syfy Company. On July 24 payment is received from Eureka Co. for the balance due. What is the amount of cash received?

• A) $2,900
• B) $2,940
• C) $3,000
• D) $5,000

---

Definitions:

Disposable Income

The financial resources available to a household for saving and spending after subtracting income taxes.

Consumption

The part of income or the amount of wealth that is used for purchasing goods and services for personal use.

APC

The Average Propensity to Consume indicates the share of income used for consumption purposes.

Disposable Income

Economic reserves left for households after income tax deductions, meant for spending and saving.