Purchase-Related Transactions The Stationery Company purchased merchandise on account from a supplier for $14,500, terms 2/10, n/30. The Stationery Company returned merchandise with an invoice amount of $3,500 and received full credit. a. If The Stationery Company pays the invoice within the discount period, what is the amount of cash required for the payment? $ b. Under a perpetual inventory system, what account is credited by The Stationery Company to record the return?

Question

Nylah

Business

1 April, 21:34

Purchase-Related Transactions The Stationery Company purchased merchandise on account from a supplier for $14,500, terms 2/10, n/30. The Stationery Company returned merchandise with an invoice amount of $3,500 and received full credit. a. If The Stationery Company pays the invoice within the discount period, what is the amount of cash required for the payment? $ b. Under a perpetual inventory system, what account is credited by The Stationery Company to record the return?

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Answers (1)

Know the Answer?

Zaire White · Answer 1

10,780

Explanation:

Cash required for payment

= Net purchases * (100-discount) %

= (14,500-3,500) * (100-2) %

= 10,780

B) Inventory

As the asset has to be reduced