Purchases Transactions Xanadu Company purchased merchandise on account
from Springhill Company for $8,300, terms 1/10, n/30.
Xanadu returned merchandise with an invoice amount of
$1,500 and received full credit.
a. If Xanadu Company pays the invoice within the
discount period, what is the amount of cash required for
the payment? If required, round the answer to the
nearest dollar.
30
b. What account is debited by Xanadu Company to
record the return?
Accounts Payable-Springhill Company