Question

b. Recent for $9.000, Lise and received full che iod, what is the OBJ.3 EE 6-3 p.272 ed by MR Tile Como PE 6-3A Purchase transactions MR Tile Company purchased merchandise on account from a supplier for 2/10, n/30. MR Tile Company returned $1,500 of the merchandise and a. If MR Tile Company pays the invoice within the discount period, of cash required for the payment? b. Under a perpetual inventory system, what account is credited by My to record the return?

Answer 1

a) 1) Discount policy 2/10 it means 2% discount if payment made within 10 days of purchase

2) Total Purchase $ 9,000 (-) Returned $1,500 = Net Amount Payable $ 7500

3) Amount of cash required for payment :-

$7,500 - { $ 7,500*2%} $150 = $7350

b) Goods Return  Debit $ 1,500

To MR TILE company Credit $ 1,500