On March 6, 2016, Salon Express purchased merchandise from Hair Fashions with a list price of $19,000, terms 2 / 10, n / 45. On March 10, Salon returned merchandise to Hair Fashions for credit. The list price of the returned merchandise was $8,500. Salon paid cash to settle the accounts payable on March 15, 2016.
a. What is the amount of the check that Salon must write to Hair Fashions on March 15?
b. Record the events in a horizontal statements model like the following one.
c. How much would Salon pay for the merchandise purchased if the payment is not made until March 20, 2016?
d. Record the payment of the merchandise in Requirement c in a horizontal statements model like the one shown above.
e. Why would Hair Fashions sell merchandise with the terms 2 / 10, n / 45?

  • CreatedApril 20, 2015
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