Purchases TransactionsBarans Company purchased merchandise on account from a supplier for $9,200, terms 2/10, n/30. Barans Company returned $1,700of the merchandise and received full credit.a. If Barans Company pays the invoice within the discount period, what is the amount of cash required for the payment?b. What account is credited by Barans Company to record the return?Merchandise InventoryFeedbackCheck My Work(a) The return of merchandise reduces the original invoice amount to be paid. The discount is taken on the amount owed onthe merchandise after the return.(b) Any discounts or returns are recorded directly by the buyer who reduces the balances of Accounts Payable and MerchandiseInventory, using a debit memo based on the net cost of the merchandise.9:04 P10/20/2%23近

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Barans Company purchased merchandise on account from a supplier for $9,200, terms 2/10, n/30. Barans Company returned $1,700 of the merchandise and received full credit. a. If Barans Company pays the invoice within the discount period, what is the amount of cash required for the payment? %$4 b. What account is credited by Barans Company to record the return? Merchandise Inventory

Barans Company purchased merchandise on account from a supplier for $9,200, terms 2/10, n/30. Barans Company returned $1,700 of the merchandise and received full credit. a. If Barans Company pays the invoice within the discount period, what is the amount of cash required for the payment? %$4 b. What account is credited by Barans Company to record the return? Merchandise Inventory

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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