Newington

Paints purchased merchandise on account from a supplier for

$11,000,

terms

1/10,

n/30.

Newington

Paints returned

$1,325

of the merchandise two days later and received full credit.

1.	If Newington Paints pays the invoice one day before the end of the discount period, what is the amount of the discount?
2.	Under the perpetual inventory system, what account is credited by Newington Paints to record the return?
3.	Assuming the payment was made one day before the end of the discount period, what is the balance of the Merchandise Inventory account after these transactions?

Question content area bottom

Part 1

1. If

Newington

Paints pays the invoice one day before the end of the discount period, what is the amount of the discount? (Round to the nearest cent.)

The amount of the discount is

$enter your response here.