Purchase-related transactions Shepherd Company purchased merchandise on account from a supplier for $8,000, terms FOB shipping point, n/30. The seller paid freight of $50 as an accommodation to Shepherd Company. Shepherd Company returned $1,200 of the merchandise before payment was made and received full credit. a. What is the amount of cash required for the payment by Shepherd Company? $ X b. Which accounts are decreased by Shepherd Company to record the return? Inventory and Accounts Payable ?

Purchase-related transactions Shepherd Company purchased merchandise on account from a supplier for $8,000, terms FOB shipping point, N/30. The seller pald freioht of $50 as an accommodation to Shepherd Compary. Shepherd Company returned $1,200 of the merchandise before payment was made and recelved full credit. a. What is the amount of cash required for the payment by shepherd Company? x b. Which accounts are decreased by Shepherd Company to record the retum