1. A company sells merchandise on account for $5,000 to a customer with credit terms of 2/10, n/30. The customer returns $1,000 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the customers check?

a) $3,920

b) $4,900

c) $4,920

d) $3,998

e) $4,000

2. Clark Corporation uses the perpetual inventory system. On May 1, Clark Corporation purchased merchandise on account for $10,000 with terms 2/10, n/30. Clark Corporation pays a shipping company $200 to transport the merchandise from the seller to Clark Corporation. Clark Corporation returns merchandise with an invoice price of $1,000 to the seller on May 7. On May 30, Clark Corporation pays for the merchandise it retains. How would Clark Corporation record the payment on May 30 for the merchandise retained?

a) Debit accounts payable for $9,000; credit cash for $8,820; and credit inventory for $180.

b) Debit accounts payable for $9,000; credit cash for $9,000.

c) Debit accounts payable for $10,000; credit cash for $10,000.

d) Debit accounts payable for $9,000; credit cash for $8,820; and a credit to purchase discounts for $180.

e) Debit accounts payable for $9,000; credit inventory for $9,000.