Mathis problem

Question

A women buys a $78 necklace at a jewelry store. She gives the jeweler a cheque for $100. Because he does not have the $22 change on hand, he goes to another merchant next door. There he exchanges the women's cheque for $100 in cash. He returns and gives the women the necklace and her change. Later the cheques bounces and he must make it good to the other merchant. He originally paid $39 for the necklace. What is his total out-of-pocket loss? 

Answer 1

This question is best solved by looking at the cash out and then subtracting from that the cash in.

 

Cash Out

$39 that the necklace originally cost him

$22 change given to customer

$100 cash given to other merchant

 

$161 total dollars out

 

Cash In

$100 from the other merchant

 

Cash out less cash in =$61 total loss