What was the amount of the payment that abby made

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Question

On Feb 17, 2018, Abby industries purchased inventory from Judith Inc. at a total cost of $48,000. Upon inspection, Abby determined that several items at a total cost of $6,000 were damaged and were no longer saleable. Therefore, on Feb 18, 2018 Abby returned them to Judith, FOB shipping point. The cost of the shipping was $425.

On Feb 24, 2018, based upon further review, Abby industries discovered several additional items were the wrong color and could only be sold at a discount. Based upon discussios between the two companies, Judith issued a credit memorandum in the amount of $2,200.

Required:

Assuming that the inventory was purchased under the terms 1/20/net 30, and assuming that Abby pays the amount due on March 1, 2018, what was the amount of the payment that Abby made?

Reference no: EM132406854

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