A customer of J and J purchased $2 million dollars of merchandise on account. J & J Products gives terms of 2%, 10 days, net 30. J& J Products believes that the customer will take the discount if is equal to at least an 16% return. J & J Products uses the net method to record sales. Assume a 360-day year.
Required: a. How percentage return will be earned by the customer if they make the payment within the discount period?
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