Answer:
perpetual method
Inventory 9090 debit
Accounts Payable 9090 credit
--to record purchase--
Accounts Payable 2340 debit
Inventory 2340 credit
--to record returned goods--
Accounts Payable 6750 debit
Inventory 202.5 credit
Cash 6547.5
--to record payment within discount--
periodic method:
Purchase 10,100 debit
Accounts Payable 10,100 credit
--to record purchase--
Accounts Payable 2,600 debit
Purchase Returns 2,600 credit
--to record returned goods--
Accounts Payable 7,500 debit
Purchase Discount and Allowance 952.5 credit
Cash 6547.5 credit
--to record payment within discount--
Explanation:
Perpetual mehod;
10,100 x (1 - 10%) = 9,090
2,600 x (1 - 10%) = 2,340
balance 9,090 - 2,340 = 6,750
discount 6,750 x 3% = 202.5
Period method:
purhcase 10,100
return 2,600
discount and allowance: 7,500 - 6,547.5 = 952.5
