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Problem - Purchases transactions - Halibut Company purchased merchandise on account from a supplier for $18,600, terms 2/10 n/30. Halibut returned merchandise with an invoice amount of $5,000 and received full credit.
Required -
a. If Halibut Company pays the invoice within the discount period, what is the amount of cash required for the payment?
b. What account is credited by Halibut Company to record the return?
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