Question

Purchase-Related Transactions The Wheatland Company purchased merchandise on account from a supplier for $8.500, terms 2/10, 1/30, The Wheatland Company returned 1.000 merchandise and received full credit a. What is the amount of cash required for the payment within the discount period? 7.425 X h. Under a perpetuo ventory system, what account is credited by The Wheatland Company to record the return? Merchandise Inventory e The thout the counts on thes Under a perpetual stem for a return, the buyer reduces both Accounts P three dicted rchandisinventory e

Answer 1

Answer

• Requirement [a]
  Amount of cash to be paid within discount period
  = Amount due – (Amount due x Discount %)
  = [$8500 – 1000 returned] – ($ 7500 x 2%)
  =7500 - 150
  = $ 7,350 Answer
• Requirement [b] already correct.