Question

1. Write a journal entry for purchased goods for list price 20000 at 10% trade discount.
2. Returned goods of list price 4000.
3. Settled the account under cash discount 2%.

Answer 1

Answer:

1) PURCHASES A/C -- 20000

TO CASH A/C --18000

TO DISCOUNT A/C -- 2000

2). CASH A/C -- 4000

TO PURCHASES RETURN A/C -- 4000

3). idk about this one...

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