The 10-Cent Store on February 1, 2021 purchased $21,540 of merchandise from Holiday Express

under the terms 1/8, n/20. On February 3, 2021 10-Cent returned $940 of merchandise

because the items were broken. On February 10, 2021, Holiday Express gave 10-Cent a $1,040

allowance because the some of the merchandise was the wrong color and would be harder to

sell.

Required:

(a) If 10-Cent Store pays Holiday Express the entire amount it owes on February 8, 2021,

how much will it pay to Holiday Express?

(b) If 10-Cent Store pays Holiday Express the entire amount it owes on February 28, 2021,

how much will it pay to Holiday Express?