Answer:
B. $686
Explanation:
The payment terms 2/10, n/30 implies that if Chaz pays within the next 10 days of purchase, it will receive a discount of 2% of the net invoice amount and that the latest date for the settlement of bill is within the next 30 days of purchase.
The latest payment date to qualify for discount is June 25th i.e ( June 15 + 10) but the payment was made by June 24th , so this qualifies Chaz Co for the discount.
The net amount of cash received by Blue Company is
Net amount due = Invoice bill - Returns × 98%
= (1000 - 3000)× 98%
= $686
