Answer:
Inventory 1750 debit
Accounts Payable 1,750 credit
--to record purchase--
Inventory 120 debit
Cash 120 credit
--to record payment of freights--
Accounts Payable 400 debit
Inventory 400 credit
--to record returned goods--
Accounts Payable 1350 debit
Inventory 27 credit
Cash 1323 credit
--to record payment within discount--
Accounts Receivables 4700 debit
Sales Revenues 4700 credit
--to record sale--
COGS 2450 debit
Inventory 2450 credit
--to record COGS of the previous sale--
Cash 4700 debit
Accounts Receivables 4700 credit
--to record collection in full amount--
Inventory 2550 debit
Accounts Payable 2550 credit
--to record purchase--
Accounts Receivables 3650 debit
Sales Revenues 3650 credit
--to record sale--
COGS 1950 debit
Inventory 1950 credit
--to record COGS of the previous sale--
Accounts Payable 190 debit
Inventory 190 credit
--to record returned goods--
Accounts Payable 2360 debit
Inventory 47.2 credit
Cash 2312.8 credit
--to record payment within discount--
Explanation:
We reocrd each entry assuming the basic accounting principles
debit = credit
<u>first purchase balance:</u>
1,750 less 400 return = 1,350
discount 1,350 x 2% = 27
cash outlay 1,350 - 27 = 1,323
<u>second purchase balance:</u>
2,550 less 190= 2,360 balance
discount 2,360 x 2% discount = 47.20
cash outlay 2,360 - 47.20 = 2312.8
