c. Discovered that $7,800 of the merchandise purchased in (a) was defective and returned items, receiving credit for $7,644 ($7,800 - ($7,800 x 2%)] Accounts Payable-Foster Co. Merchandise Inventory Feedback Check My Work C. This transaction reduces Merchandise Inventory and the Accounts Payable. Since this return was made after payment was made at the discounted price, the credit will be for the cost of returned goods less the discount d. Purchased $6,200 of merchandise from Foster Co. on account, terms 1/30. Merchandise Inventory 88 Accounts Payable-Foster Co. Feed Check My Work d. A purchase increases Merchandise Inventory and Accounts Payable, e. Received a refund from Foster Co. for return in (c) less the purchase in (a). Cash Accounts Payable Foster Co 88 Feedback