- Ebook Show Me How Purchases Transactions Xanadu Company Purchased Merchandise On Account From Springhill Company For 14 1 (31.56 KiB) Viewed 8 times
eBook Show Me How Purchases Transactions Xanadu Company purchased merchandise on account from Springhill Company for $14,000, terms 1/10, n/30. Xanadu returned merchandise with an invoice amount of $3,200 and received full credit. a. If Xanadu Company pays the invoice within the discount period, what is the amount of cash required for the payment? If required, round the answer to the nearest dollar. Printem b. What account is debited by Xanadu Company to record the return? Accounts Payable-Springhill Company Accounts Receivable Cash Merchandise Inventory Purchases Sales Sales Returns and Allowances ase discounts, the net purchase price is recorded at the time of purchase. If the buyer makes a return of merchandise or is granted a pre e discount, the amount of the retum is recorded at the invoice price less the discount id directly by the buyer who reduces the balances of Accounts Payable and Merchandise inventory, using a debit memo based on the net cost of @