--- **Purchases Transactions** Nieman Company purchased merchandise on account from a supplier for $11,800, terms 1/10, n/30. Nieman Company returned $2,000 of the merchandise and received full credit. a. If Nieman Company pays the invoice within the discount period, what is the amount of cash required for the payment? $ [Textbox] b. What account is credited by Nieman Company to record the return? [Dropdown Menu] --- Terms Explained: - **1/10, n/30:** This means a 1% discount is available if the invoice is paid within 10 days, otherwise the net (full) amount is due within 30 days. Calculation Guidance: 1. **Original Purchase:** $11,800 2. **Return Amount:** $2,000 3. **Net Purchase after Return:** $11,800 - $2,000 = $9,800 4. **Discount (if paid within 10 days):** 1% of $9,800 = $98 5. **Amount to Pay (if paid within the discount period):** $9,800 - $98 Consider highlighting the importance of prompt payments to take advantage of cash discounts and ensure accurate accounting for returns. ---
--- **Purchases Transactions** Nieman Company purchased merchandise on account from a supplier for $11,800, terms 1/10, n/30. Nieman Company returned $2,000 of the merchandise and received full credit. a. If Nieman Company pays the invoice within the discount period, what is the amount of cash required for the payment? $ [Textbox] b. What account is credited by Nieman Company to record the return? [Dropdown Menu] --- Terms Explained: - **1/10, n/30:** This means a 1% discount is available if the invoice is paid within 10 days, otherwise the net (full) amount is due within 30 days. Calculation Guidance: 1. **Original Purchase:** $11,800 2. **Return Amount:** $2,000 3. **Net Purchase after Return:** $11,800 - $2,000 = $9,800 4. **Discount (if paid within 10 days):** 1% of $9,800 = $98 5. **Amount to Pay (if paid within the discount period):** $9,800 - $98 Consider highlighting the importance of prompt payments to take advantage of cash discounts and ensure accurate accounting for returns. ---
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![---
**Purchases Transactions**
Nieman Company purchased merchandise on account from a supplier for $11,800, terms 1/10, n/30. Nieman Company returned $2,000 of the merchandise and received full credit.
a. If Nieman Company pays the invoice within the discount period, what is the amount of cash required for the payment?
$ [Textbox]
b. What account is credited by Nieman Company to record the return?
[Dropdown Menu]
---
Terms Explained:
- **1/10, n/30:** This means a 1% discount is available if the invoice is paid within 10 days, otherwise the net (full) amount is due within 30 days.
Calculation Guidance:
1. **Original Purchase:** $11,800
2. **Return Amount:** $2,000
3. **Net Purchase after Return:** $11,800 - $2,000 = $9,800
4. **Discount (if paid within 10 days):** 1% of $9,800 = $98
5. **Amount to Pay (if paid within the discount period):** $9,800 - $98
Consider highlighting the importance of prompt payments to take advantage of cash discounts and ensure accurate accounting for returns.
---](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9557ab66-16b0-4733-a12e-96bc38d558c3%2F11faf1f9-eea5-4d38-a249-392ca5e1b823%2F0v4h4pl.jpeg&w=3840&q=75)
Transcribed Image Text:---
**Purchases Transactions**
Nieman Company purchased merchandise on account from a supplier for $11,800, terms 1/10, n/30. Nieman Company returned $2,000 of the merchandise and received full credit.
a. If Nieman Company pays the invoice within the discount period, what is the amount of cash required for the payment?
$ [Textbox]
b. What account is credited by Nieman Company to record the return?
[Dropdown Menu]
---
Terms Explained:
- **1/10, n/30:** This means a 1% discount is available if the invoice is paid within 10 days, otherwise the net (full) amount is due within 30 days.
Calculation Guidance:
1. **Original Purchase:** $11,800
2. **Return Amount:** $2,000
3. **Net Purchase after Return:** $11,800 - $2,000 = $9,800
4. **Discount (if paid within 10 days):** 1% of $9,800 = $98
5. **Amount to Pay (if paid within the discount period):** $9,800 - $98
Consider highlighting the importance of prompt payments to take advantage of cash discounts and ensure accurate accounting for returns.
---
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