question 1 and 2

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1. A retailer obtains a purchase allowance from the manufacturer in the amount of $600 for faulty inventory parts. Which of the following represents the journal entry for this transaction, assuming the retailer has already remitted payment? 600 Accounts Payable Merchandise Inventory 600 600 Cash Purchase Returns and Allowances 600 600 Accounts Payable Purchase Discounts Cash 10 590 2. What do credit terms of 4/10, n/30 mean in regard to a purchase