A business purchased inventory on credit for $\text{₦}250,000$, terms $2\%$ discount if paid within 30 days. Within 20 days it returned goods worth $\text{₦}30,000$ and then paid the remaining amount within the discount period. The purchase journal records a debit to Purchases $\text{₦}250,000$ and a credit to Accounts Payable $\text{₦}250,000$. The cash payments journal records a credit to Cash $\text{₦}215,600$ and a debit to Accounts Payable $\text{₦}215,600$. Identify the missing journal entries that should have been recorded, and compute the net cash actually paid after considering the returns and discount.

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Missing entries: Debit Purchases Returns $\text{₦}30,000$, Credit Accounts Payable $\text{₦}30,000$; Debit Purchases Discount Received $\text{₦}4,400$, Credit Accounts Payable $\text{₦}4,400$. Net cash paid $\text{₦}215,600$

Neco 2021 Financial Accounting Question 17

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