Halibut Company purchased merchandise on account from a supplier for $18,600, terms 2/10, n/30. Halibut Company returned $5,000 of the merchandise and received full credit.
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?
A credit entry reduces an asset account.
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