Kern Company Sells Merchandise on Account for $8,000 to Block

question 31

Multiple Choice

Kern Company sells merchandise on account for $8,000 to Block Company with credit terms of 2/10, n/30. Block Company returns $1,600 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check?

• A) $6,272
• B) $6,400
• C) $7,840
• D) $7,872

Appreciate the significance of cultural competence and diversity awareness in effective helping.

Acknowledge the necessity of personal and professional support systems.

Comprehend the value of lifelong learning and development in the helping profession.

Understand the role and impact of various counseling theories and practices.

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Definitions:

Taxable Income

The amount of income that is subject to tax, after accounting for deductions and exemptions.

FMV

Fair Market Value; an estimate of the market value of a property, based on what a knowledgeable, willing, and unpressured buyer would likely pay to a knowledgeable, willing, and unpressured seller.

Schedule M-1

A tax form used by corporations to reconcile income reported on the company's financial statements with the income reported on the tax return.

Book Income

The income or profit reported by a company in its financial statements before adjustments for taxes, as per accounting rules, different from taxable income.