Kelso Company purchased merchandise on account from Office Suppliers for $129,000, with terms of 2/10, n/30. During the discount period, Kelso returned some merchandise and paid $117,600 as payment in full. Kelso uses a perpetual inventory system.

(a) the purchase of merchandise. (b) the return of merchandise and why is 117600 divided by 98% to find the amount of return of merchandise?

(c) the payment on account.