Answer:
Explanation:
The journal entries are shown below:
a. Merchandise Inventory A/c $8,190
To Accounts payable A/c $8,190
(Being goods purchased on credit)
The computation after applying discount is shown below:
= Purchase amount - purchase amount × trade discount percentage
= $9,100 - $9,100 × 10%
= $9,100 - $910
= $8,190
b. Accounts payable A/c $2,610
To Merchandise Inventory A/c $2,610
(Being goods returned is recorded)
The computation after applying discount is shown below:
= Purchase amount - purchase amount × trade discount percentage
= $2,900 - $2,900 × 10%
= $2,900 - $290
= $2,610
c. Accounts payable A/c Dr $5,580 ($8,190 - $2,610)
To Cash A/c $5,412.60
To Merchandise Inventory A/c $167.40 ($8,190 - $2,610) × 3%
(Being due amount is paid and remaining balance is credited to the cash account)
