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Question 6.3: Purchase Transactions Rofles Company purchased merchandise o......

Purchase Transactions

Rofles Company purchased merchandise on account from a supplier for $11,500, terms 2/10, n/30. Rofles Company returned $3,000 of the merchandise and received full credit.

a.  If Rofles Company pays the invoice within the discount period, what is the amount of cash required for the payment?

b.  Under a perpetual inventory system, what account is credited by Rofles Company to record the return?

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a.   $8,330. Purchase of $11,500 less the return of $3,000 less the discount of $170 [($11,500 – $3,000) × 2%].

b.   Merchandise Inventory

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