Garden company purchased merchandise on account from parker company for $88,000 with terms 1/15, net 45. garden company returned $12,000 of the merchandise and received full credit from parker company. if garden company pays within the discount period, what is the amount of cash required for payment?

The amount of cash required for payment is $75,240

Explanation:

The computation of cash required for payment is shown below:

= Purchase of merchandise - returned inventory - discount @1%

= $88,000 - $12,000 - $760

= $75,240

The discount is computed by

= Purchase of merchandise - returned inventory × discount rate

= $88,000 - $12,000 × 1%

= $76,000 × 1%

= $760

The actual amount is come when the returned inventory and discount amount should be deducted from the merchandise amount

answer$22,000 ;

answera public company has access to more capital;