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

A.$13,328

B. Merchandise Inventory

Explanation:

Calculation for Halibut Company the amount of cash required for the payment

Calculation for Purchase:

= [$18,600 - ($18,600 × 2%)]

=$18,600-$372

=$18,228

Calculation for the return:

[($5,000 – ($5,000 × 2%)]

$5,000-$100

=$4,900

Hence:

Purchase - Return

=$18,228 -$4,900

=$13,328

Therefore the amount of cash required for the payment will be $13,328

b. The account to be credited by Halibut Company to record the return will be Merchandise Inventory.

b. 0.67

Explanation:

UCL = 1 + 0.10

        = 1.10 inch

LCL = 1 - 0.10

       = 0.9 inch

standard deviation = 0.005 inch

mean = 1 inch

Cpk

= min[(UCL - mean)/(3*standard deviation) , (mean - LCL)/(3*standard deviation))]

= min[(1.10 - 1)/(3*0.05) , (1 - 0.9)/(3*0.05))]

= min[0.67 , 0.67]

= 0.67

Therefore, Theprocess capability index (Cpk) if the long-run process mean is 1 inch is 0.67