Answer:
Inventory 1450 debit
Accounts Payable 1450 crdit
--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 1050 debit
Inventory 21 credit
Cash 1029 credit
--to record payment within discount--
Accounts Receivables 4100 debit
Sales Revenues 4100 credit
--to record sale--
COGS 2150 debit
Inventory 2150 credit
--to record COGS of the previous sale--
Cash 4,100
Accounts Receivables 4100
--to record collection--
Explanation:
For the purchase we must adjust teh invoice nominal as we are paying within the discount windows and also, there was returned goods.
Balance of the account payable:
1450 - 400 return = 1050
Then 2% discount: 1,050 x 0.02 = 21
Cash payement: 1,050 - 21 = 1,029
The sale do not have credit terms for discount neither a return thus, we don't have to make any adjustment to the invoice nominal the customer pay that amount.
