Sunday, 5 July 2015

Cima C02 Exam Question No 14

Question No 14:

On 1 May, East owed a supplier $1,200. During the month of May, East: • Purchased goods for $1,700 and the supplier offered a 5% discount for payment within the month. • Returned goods valued at $100 which had been purchased in April. • Sent a cheque to the supplier for payment of the goods delivered in May.
What is the balance on the supplier’s account at the end of May?

A.
$1,015
B.
$1,100
C.
$1,185
D.
$1,300

Answer: C

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