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

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 15MC: A customer returns $870 worth of merchandise and receives a full refund. What accounts recognize...
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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
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
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