Question

A company purchased $10,000 of merchandise on June 15 with terms of 3/10, n/45. On June 20, it returned $800 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it was entitled to. The cash paid on June 24 equals:

Answer 1

$8,924

Step-by-step explanation:

the journal entries should be:

June 15, merchandise purchased on account, terms 3/10, n/45

Dr Merchandise inventory 10,000

Cr Accounts payable 10,000

June 20, defective merchandise returned

Dr Accounts payable 800

Cr Merchandise inventory 800

June 24, invoice is paid within discount term

Dr Accounts payable 9,200

Cr Cash 8,924

Cr Purchase discount 276