Answer:
Explanation:
The journal entries are shown below:
(A) Inventory A/c Dr $47,916
To Accounts payable A/c $47,916
(Being purchase made on credit basis is recorded)
The computation of the inventory is shown below:
= Purchase amount - purchase amount × discount rate
= $48,400 - $48,400 × 1%
= $48,400 - $484
= $47,916
(B) Accounts payable A/c $47,916
To Cash A/c $47,916
(Being amount paid recorded)
(C) Inventory A/c Dr $7,722
To Accounts payable A/c $7,722
(Being return inventory is recorded)
The computation of the inventory is shown below:
= Purchase amount - purchase amount × discount rate
= $7,800- $7,800 × 1%
= $7,800 - $78
= $7,722
(D) inventory A/c Dr $6,000
To Accounts payable A/c $6,000
(Being purchase made on credit basis is recorded)
(E) Cash A/c Dr $1,722 ($7,722 - $6,000)
To Accounts payable A/c $1,722
(Being received refund amount recorded)
