Python Company Sells Merchandise on Account for $5000 to Monte

question 154

Multiple Choice

Python Company sells merchandise on account for $5000 to Monte Company with credit terms of 2/10 n/30. Monte Company returns $1500 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) $3430
• B) $4000
• C) $4900
• D) $4430

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Definitions:

Excise Tax

A tax on specific goods or activities, often included in the price of products like alcohol, tobacco, and gasoline, used by governments to raise revenue.

American Republic

A term referring to the United States of America, emphasizing its form of government as a republic.