Goods costing $1,900 are purchased on account on July 15 with credit terms of 2/10, n/30. On July 18, the purchaser receives a $300 credit from the supplier for damaged goods. Give the journal entry on July 24 to record payment of the balance due within the discount period

The amount of the debt that is unpaid till the date of the maturity or the date of the promissory note is the known as the balance due.

The promissory note includes the amount due that is unpaid by the customer and the maturity date is the date that is denoted to the customer as the deadline to pay the amount.

The journal entries have been attached below.

The computation is shown below:

To know more about the Journal entries, refer to the link below:

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Explanation:

The journal entry is shown below:

Accounts payable A/c Dr $1,600

     To Cash A/c   $1,568  

     To Merchandise Inventory A/c $32

(Being due amount is paid and the remaining balance is credited to the cash account)

The computation is shown below:

For account payable

= Purchase value of goods - credit from the supplier for damaged goods

= $1,900 - $300

= $1,600

For discount

= $1,600 × 2%

= $32

We assume the perpetual inventory method is followed

i might look it up later.