eBook Show Me How Purchases Transactions Rolfes Company purchased merchandise on account from Springhill Company for $11,400, terms 2/10, n/30. Rolfes returned merchandise with an invoice amount of $1,700 and received full credit. a. If Rolfes Company pays the invoice within the discount period, what is the amount of cash required for the payment? If required, round the answer to the nearest dollar. 9,699.98 X b. What account is debited by Rolfes Company to record the return? Accounts Payable-Springhill Company Check My Work (a) Since buyers normally take all purchase discounts, the net purchase price is recorded at the time of purchase. If the buyer makes a retum of merchant organ a price allowance for an invoice with a purchase discount, the amount of the return is recorded at the invoice price less the discount (b) Any discounts or returns are recorded directly by the buyer who reduces the balances of Accounts Payable and Merchandise inventory, using a debited the net cost of the merchandise