On March 6, 2016, Salon Express purchased merchandise from Hair Fashions with a list price of $19,000,

Question:

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.

Required

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.

On March 6, 2016, Salon Express purchased merchandise from Hair

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?

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...