Final answer:
Rolfes Company is required to pay $4,606 to settle the account with Springhill Company within the discount period after returning merchandise and applying a 2% discount.
Step-by-step explanation:
The student's question involves calculating the cash required for Rolfes Company to pay Springhill Company's invoice within the discount period. Initially, Rolfes Company purchased merchandise on account from Springhill Company for $5,900, with payment terms of 2/10, n/30. Rolfes later returned merchandise worth $1,200, for which they received full credit. To calculate the amount of cash required to pay the invoice within the discount period, we need to subtract the credit received from the original invoice amount and then apply the 2% discount.
Firstly, we adjust the invoice by deducting the returns: $5,900 - $1,200 = $4,700. Next, we calculate the 2% discount: 2% of $4,700 is $94. Therefore, if Rolfes Company pays the invoice within the discount period, they will only need to pay 98% of $4,700, which is $4,700 - $94 = $4,606.
After rounding to the nearest dollar, Rolfes Company is required to pay $4,606 to Springhill Company within the discount period to settle their account.