Answer:
See the journal entries below.
Explanation:
The journal entry will look as follows:
<u>Date Account and explanation Debit ($) Credit ($) </u>
Aug 6 Inventory (50 * $100) 5,000
Account payable 5,000
<u><em> (To record inventory purchased on account.) </em></u>
Aug 7 Inventory 300
Cash 300
<em><u> (To record payment of freight charges associated with the August 6 purchase.)</u></em>
Aug 10 Account payable (5 * $100) 500
Inventory 500
<u><em> (To record the returns of defective five game devices to GameGirl.)</em></u>
Aug 14 Account payable (w.1) 4,500
Cash (balancing figure) 4,455
Inventory (w.2) 45
<u><em> (To record the payment of the full amount due to GameGirl.) </em></u>
Aug 23 Account receivable (30 * $120) 3,600
Sales revenue 3,600
Cost of goods sold 3,170
Inventory 3170
<u><em> (To record the Sales and cost of 30 game devices purchased on August 6.) </em></u>
<u>Workings:</u>
w.1. Account payable = Purchases on account on August 6 - Defective inventory returned on August 10 = $5,000 - $500 = $4,500
w.2. Inventory = Discount received on account payable for paying within 10 days = w.1 * 1% = $4,500 * 1% =$45
