Details of a Purchase Invoice and Related Credit Memo Are

Essay

Details of a purchase invoice and related credit memo are summarized as follows: ​
Assume that the credit memo was received prior to payment and that the invoice is paid within the discount period. Determine the following: (a) Amount of the cash discount allowed.
(b) Amount to be paid by the purchaser if the discount is taken.
(c) Cost of the merchandise to the purchaser if the discount is not taken.