Answer:
inventory 76,000 debit
accounts payable 76,000 credit
---to record purchase on account--
freigth-in 1,276 debit
cash 1,276 credit
--to record payment of freigth--
accounts payable 7,600 debit
returns and allowance 7,600 credit
--to record return of good to supplier--
accounts payable 68,400 debit
purchase discount 2,052 credit
cash 66,348 credit
--to record payment within discount period--
Explanation:
As the company determinates inventory on a periodic basis we do not adjust right away, we use discount and return accounts instead of inventory
76,000 original invoice nominal
<u> -7,600 </u>discount
68,400 nominal after return subject to discount of 3%
<u> -2,052</u> discount
66,348 cash outlay to settle with supplier
