Top Notch Company purchased merchandise on account from a supplier for $13,500, terms 2/10, n/30. Top Notch

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Top Notch Company purchased merchandise on account from a supplier for $13,500, terms 2/10, n/30. Top Notch Company returned $4,000 of the merchandise before payment was made and received full credit.

a. If Top Notch 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 decreased by Top Notch Company to record the return?

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Survey of Accounting

ISBN: 978-1133189121

6th edition

Authors: Carl S Warren

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Question Posted: Feb 04, 2014 07:41 AM

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Top Notch Company purchased merchandise on account from a supplier for $13,500, terms 2/10, n/30. Top Notch

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