Question

which accounts should these 2 transaction to be recorded in?

1-Purchased inventory on credit from farhiya the business will receive a 5% discount if payment is made within 7 days AMOUNT= $5500

2-Paid the amount owing to farhiya and received the discount (an entry is also required for the GST adjustment)

Answer 1

@FutureMathProfessor

Answer 2

can u pls pls again?

Answer 3

First when purchase is done on credit

Purchases debit $5500
Fariya Credit $5500

and if payment is made within 7 days

Purchases $5500
Discount received $275
Cash or bank $5225