Cash discounts and purchase returnsOn April 6, 2011. Taylor Furnishings purchased $12,400...

Cash discounts and purchase returns

On April 6, 2011. Taylor Furnishings purchased $12,400 of merchandise from Bergin’s Imports, terms 2/10 n/45, On April 8. Taylor returned $1,200 of the merchandise to Bergin’s Imports for credit. Taylor paid cash for the merchandise on April 15, 2011.

Required

a. What is the amount that Taylor must pay Bergin’s Imports on April 15?

b. Record the events in a horizontal statements model like the following one.

c. How much must Taylor pay for the merchandise purchased if the payment is not made until April 20, 2011?

d. Record the payment in event (c) in a horizontal statements model like the one above.

e. Why would Taylor want to pay for the merchandise by April 15?