When purchases of merchandise are made for cash, the transaction may be recorded with the following entry. a. debit Cash; credit Merchandise Inventory; b. debit Merchandise Inventory; credit Cash c. debit Merchandise Inventory; credit Cash Discounts d. debit Merchandise Inventory; credit Purchases ANS: B DIF: Moderate OBJ: 06-03 A retailer purchases merchandise with a catalog list price of $10,000. The retailer receives a 25% trade discount and credit terms of 2/10, n/30. What amount should the retailer debit to the Merchandise Inventory account? a. $7,500 b. $10,000 c. $9,800 d. $7,350 ANS: A DIF: Moderate OBJ: 06-03 A sales invoice included the following information: merchandise price, $4,000; transportation, $300; 1/10, n/eom, FOB shipping point. Assuming that a credit for merchandise returned of $600 is granted purchase to payment, that the transportation is prepaid by the seller, and that the invoice is paid within the discount period, what is the amount of cash received by the seller? a. $3,366