Show Me How

Purchases Transactions

Barans Company purchased merchandise on account from Springhill Company for $$6,300,$ terms $\frac{2}{10},\frac{n}{30}.$ Barans returned merchandise with an invoice amount of $$900$ and received full credit.

a$.$ If Barans 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 Barans Company to record the return?

Accounts Payable$-$Springhill Company $$