Purchase-related transactions The Stationery Company purchased merchandise on account from a supplier for $11,200, terms 2/10,n/30. The Stationery Company returned merchandise with an invoice amount of $1,300 and received full credit. a. If The Stationery Company pays the invoice within the discount period, what is the amount of cash required for the payment? b. Under a perpetual inventory system, what account is credited by The Stationery Company to record the return? Feedback 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 return of merchandise or is granted 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 Inventory, using a debit memo based on the net cost of the merchandise. Purchase-related transactions The Stationery Company purchased merchandise on account from a supplier for $11,200, terms 2/10,n/30. The Stationery Company returned merchandise with an invoice amount of $1,300 and received full credit. a. If The Stationery Company pays the invoice within the discount period, what is the amount of cash required for the payment? b. Under a perpetual inventory system, what account is credited by The Stationery Company to record the return? Feedback 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 return of merchandise or is granted 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 Inventory, using a debit memo based on the net cost of the merchandise