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Question: Cheddar Company purchased merchandise on account from a supplier for $8,500, terms 2/10, n/30. Before payment was due, Cheddar Company returned $800 of the merchandise and received full credit.
a. If Cheddar Company pays the invoice within the discount period, what is the amount of cash required for the payment?
b. Under a perpetual inventory system, what account is credited by Cheddar Company to record the return?
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