Answer:
Inventory 1500
Accounts Payable 1500
--to record purchase--
Inventory
Cash
--to record payment of freights--
Accounts Payable 200
Inventory 200
--to record returned goods--
Accounts Payable 1300
Inventory 26
Cash 1274
--to record payment within discount--
Inventory 90
Cash 90
--to record payment of freights--
Accounts Receivables 1600
Sales Revenues 1600
--to record sale--
COGS 800
Inventory 800
--to record COGS of the previous sale--
Sales Returns 160
Accounts Receivables 160
--to record returned goods--
Cash 1,440
Accounts Receivables 1440
--to record collection--
Inventory 80
COGS 80
--to record returned but, useful goods--
Explanation:
We reduct from the balance of the account the returrned goods:
1,500 - 200 = 1,300 then we calcualte the discount of 2 = 26
net cash outlay: 1,300 - 26 = 1,274
The freight are part of the necessary cost to acquire the goods so it increase the inventory valuation
as the returned goods are still in good conditions we can returned to our nventory and decrease thecost of good sold associate with the sale.
