Purchase-Related Transactions The Wheatland Company purchased merchandise on account from a supplier for $16,800, terms 1/10, n/30. The Wheatland Company returned $2,200 of the merchandise and received full credit. a. What is the amount of cash required for the payment within the discount period?

The amount of cash required for payment within the discount period is $14454.

Explanation:

The account payables were due for 16800 after the purchase. When thegoods are returned, the accounts receivables fall by 2200 and the new balance becomes 16800 - 2200 = $14600.

The discount term states that if payment is made within the next 10 days of purchase, a 1% discount can be availed (1/10).

If the payment is made in discount period then discount received will be,

Discount received = 14600 * 1% = $146

The cash required for payment will be 14600 - 146 = $14454