Question

On October 2, A company purchase 8 computers for business operating on account with credit term of 2/10, n/30 at a cost of $9,800.  Two computers are return on October 8 for $2450 and payment is made on October 10.  

Please prepare the Journal entry.

Answer 1

date	accounts title	debit	credit
october 2	computer	$9800
	accounts payable		$9800

computer is an asset account which should be debited when it increases and accounts payable is a liability account which should be credited when it increses.

date	accounts title	debit	credit
october 8	accounts payable	$2450
	computer		$2450

accounts payable is a liability account which should be debited when it decreases ,computer is an asset account which should be credited when it decreases

the computer purchased is not as an inventory but for for business operating so we cannnot use the purchase return account here

so the amount of account balance=$9800-$2450=$7350

date	accounts title	debit	credit
october 10	accounts payable	$7350
	discount recieved		$147
	cash		$7203

on paying october 10th the company recieved a 2% of discount of amount payable

discount recieved=$7350*2%=$147

total cash paid after discount=$7350-$147=$7203

accounts payable is a liability account which should be debited when it decreases,discount recieved is an income account which should be credited when it increases and cash is an asset account which should be credited when it decreases.