1-Wiseman Company purchased merchandise on account from a supplier for $85,000, terms 1/10, n/30. Wiseman Company returned $9,800 of the merchandise and received full credit.

a. If Wiseman Company pays the invoice within the discount period, what is the amount of cash required for the payment? $fill in the blank 1

b. What account is debited by Wiseman Company to record the return?

2-

Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period.

	Merchandise		Freight Paid by Seller		Freight Terms		Credit for Refunds and Allowances
a.	$120,800		$1,300			FOB shipping point, 1/10, n/30	$20,100
b.	147,700		2,100			FOB destination, 2/10, n/30	11,400

3-

Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period.

	Merchandise		Freight Paid by Seller		Freight Terms		Credit for Refunds and Allowances
a.	$58,600		$1,300			FOB destination, 1/10, n/30	$6,500
b.	73,100		600			FOB shipping point, 2/10, n/30	3,900