Elkhorn Company purchased merchandise on account from Springhill Company for $42,000, terms 2/10, n/30. Elkhorn returned merchandise with an invoice amount of $8,000 and received full credit.If Elkhorn Company pays the invoice within the discount period, what is the amount of cash required for the payment?What account is debited by Elkhorn Company to record the return?

Accounts payable are the suppliers from whom a company purchases its raw material or input stock. In…

Answered: Elkhorn Company purchased merchandise…

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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Elkhorn Company purchased merchandise on account from Springhill Company for $42,000, terms 2/10, n/30. Elkhorn returned merchandise with an invoice amount of $8,000 and received full credit.

If Elkhorn Company pays the invoice within the discount period, what is the amount of cash required for the payment?
What account is debited by Elkhorn Company to record the return?

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