Nieman Company purchased merchandise on account from a supplier for $5,500, terms 2/10, n/30. Nieman Company returned $1,400 of the merchandise and received full credit. a. If Nieman Company pays the invoice within the discount period, what is the amount of cash required for the payment? b. What account is credited by Nieman Company to record the return? Accounts Payable Accounts Receivable Cash Delivery Expense Merchandise Inventory Purchases Sales 4
Nieman Company purchased merchandise on account from a supplier for $5,500, terms 2/10, n/30. Nieman Company returned $1,400 of the merchandise and received full credit. a. If Nieman Company pays the invoice within the discount period, what is the amount of cash required for the payment? b. What account is credited by Nieman Company to record the return? Accounts Payable Accounts Receivable Cash Delivery Expense Merchandise Inventory Purchases Sales 4
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 15MC: A customer returns $870 worth of merchandise and receives a full refund. What accounts recognize...
Related questions
Topic Video
Question
![Purchases Transactions
Nieman Company purchased merchandise on account from a supplier for $5,500, terms 2/10,
n/30. Nieman Company returned $1,400 of the merchandise and received full credit.
a. If Nieman Company pays the invoice within the discount period, what is the amount of cash
required for the payment?
b. What account is credited by Nieman Company to record the return?
Accounts Payable
Accounts Receivable
Cash
Devery Expense
Merchandise Inventory
Purchases
Planck Wal
=&... 10
SAMSUNG
Previous
友利
5:07 AM
4/10/2023](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F018026fb-abfc-4b4a-b433-904601117aef%2F6366b5d4-7776-4719-a384-4175e3a93530%2F4p7a9ys_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Purchases Transactions
Nieman Company purchased merchandise on account from a supplier for $5,500, terms 2/10,
n/30. Nieman Company returned $1,400 of the merchandise and received full credit.
a. If Nieman Company pays the invoice within the discount period, what is the amount of cash
required for the payment?
b. What account is credited by Nieman Company to record the return?
Accounts Payable
Accounts Receivable
Cash
Devery Expense
Merchandise Inventory
Purchases
Planck Wal
=&... 10
SAMSUNG
Previous
友利
5:07 AM
4/10/2023
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
![College Accounting (Book Only): A Career Approach](https://www.bartleby.com/isbn_cover_images/9781337280570/9781337280570_smallCoverImage.gif)
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
![College Accounting (Book Only): A Career Approach](https://www.bartleby.com/isbn_cover_images/9781337280570/9781337280570_smallCoverImage.gif)
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub