Answer:
A) $22,344
B) See explanation section
C) $22,800
Explanation:
Requirement A
The amount that Home must pay Una Imports on April 15 is -
Payment = Purchase amount - Purchase return - Purchase discount
2% Discount would receive only if Home Furnishings paid within 10 days.
As the company paid within 10 days, Home Furnishings received 2% discount.
Given,
Purchase amount = $25,200
Purchase (Inventory) return = $2,400
Purchase discount = $(25,200 - 2,400) × 2% = $456
Therefore,
Payment made by Home Furnishing = $25,200 - $2,400 - $456 = $22,344
Requirement B
See the image below.
Requirement C
April 6 to April 20 = 15 days.
The term says that, 2/10, n/45 means if Home furnishing would receive a 2% discount if they managed to pay within 10 days, however, they should pay the balance within 45 days.
As Home furnishing failed to pay within 10 days, but paid within 45 days, the company did not receive the discount of $456 (2% discount after deducting the returned inventory). They have to pay $25,200 - $2,400 = $22,800.
