What is the amount of the cash discount allowable


Merchandise subject to terms 2/10, n/30, FOB shipping point, is sold on account to a customer for $25,000. The seller paid transportation costs of $1,000 and issued a credit memorandum for $2,000 prior to payment. What is the amount of the cash discount allowable?

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Accounting Basics: What is the amount of the cash discount allowable
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