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Suppose Play House uses the perpetual inventory system and buys $200,000 of Caterpillar toys on credit terms of 3/15, n/30. Some of the goods are
Suppose Play House uses the perpetual inventory system and buys $200,000 of Caterpillar toys on credit terms of 3/15, n/30. Some of the goods are damaged in shipment, so Play House returns $14,000 of the merchandise to Caterpillar. How much must Play House pay Caterpillar. a. After the discount period? b. Within the discount period? a. How much must Play House pay Caterpillar after the discount period? Original purchase amount by Play House Less: Purchase returns Amount owed by Play House after purchase return and after the discount period
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