Answer:
Explanation:
The journal entries are shown below:
On May 2:
Purchase A/c Dr $4,200
To Accounts Payable A/c $4,200
(Being purchase is made on credit)
On May 3:
Freight Inward A.c Dr $290
To Cash A/c $290
(Being freight expenses are paid in cash)
On May 5:
Accounts payable A/c Dr $350
To Purchase return $350
(Being purchase return is recorded)
On May 10:
Accounts payable A/c Dr $3,850
To Cash A/c $3,773
To Discount $77
(Being full amount is paid and the remaining balance is credited to the cash account)
The discount is computed below:
= (Purchase - purchase return) × discount rate
= ($4,200 - $350) × 2%
= $3,850 × 2%
= $77
On May 30:
Accounts receivable A/c Dr $4,900
To Sales revenue $4,900
(Being sales is recorded)
