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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?

Respuesta :

chamberlainuket

Answer:

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

abiolataiwo2015

If  the Stationery Company purchased merchandise on account from a supplier for $14,500, terms 2/10, n/30.

  • The amount of cash required for the payment is $10,780.
  • The account that  is credited to record the return is Merchandise Inventory account.

A. Cash required for the payment:

Net purchases $11,000

($14,500 - $3,500)

Less Discount on purchases $220

(2% x $11,000)

Cash required $10,780

($11,000 - $220)

B. Under a perpetual inventory system, the account  that is credited by the Stationery Company to record the return is Merchandise Inventory account.

Inconclusion if  the Stationery Company purchased merchandise on account from a supplier for $14,500, terms 2/10, n/30.

  • The amount of cash required for the payment is $10,780.
  • The account that  is credited to record the return is Merchandise Inventory account.

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https://brainly.com/question/13914132

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