1. **State the problem:** Calculate the final amount of cash collected on September 21 given the sales, discounts, returns, partial payment, and payment terms. 2. **Understand the terms and data:** - Merchandise sold: 500,000 with 10-10 discount (meaning two successive 10% discounts). - Terms: 20% down payment, balance 2/20, n/90 (2% discount if balance paid within 20 days, net due in 90 days). - Freight: 10,000 FOB Destination, prepaid (freight cost borne by seller, not added to customer payment). - Customer returned goods worth 40,000. - Partial payment made: 200,000. - Collection date: September 21 (20 days after September 1). 3. **Calculate net sales after discounts:** Apply the two successive 10% discounts on 500,000: $$500,000 \times (1 - 0.10) = 450,000$$ $$450,000 \times (1 - 0.10) = 405,000$$ 4. **Subtract returns:** $$405,000 - 40,000 = 365,000$$ 5. **Calculate down payment (20% of net sales):** $$365,000 \times 0.20 = 73,000$$ 6. **Calculate balance after down payment:** $$365,000 - 73,000 = 292,000$$ 7. **Check if balance payment qualifies for 2% discount:** Payment date is September 21, exactly 20 days after September 1, so 2% discount applies. 8. **Calculate discount on balance:** $$292,000 \times 0.02 = 5,840$$ 9. **Calculate amount due on balance after discount:** $$292,000 - 5,840 = 286,160$$ 10. **Calculate total amount due:** Down payment + discounted balance = $$73,000 + 286,160 = 359,160$$ 11. **Account for partial payment:** Partial payment made is 200,000, so remaining balance is: $$359,160 - 200,000 = 159,160$$ 12. **Final amount of cash collected on September 21:** The customer pays the remaining balance on September 21, so the final cash collected on that date is: $$159,160$$ **Answer:** The final amount of cash collected on September 21 is **159,160**.