Purchases Transactions Rolfes Company purchased merchandise on account from Springhill Company for $7,000, terms 1/10, 30, Rolfes returned merchandise with an invoice amount of $1,500 and received full credit. a. If Roifes 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. b. What account is debited by Rolfes Company to record the return? Accounts Payable-Springhill Company TO My W (a) Since by normally take at purchase discounts, the net purchase price is reconded at the time of purchase the buyer makes a retum of merchandise or is granted a price allowance for an invoice with a purchase decourt, th amount of the retum is recorded at the invoice price less the discount a) Any discounts or retums are recorded directly by the buyer who reduces the balances of Accounts Payable and Merchandise ventory, using a debit meno bend on the net cost of the merchandise