BRIEF EXERCISE 5-5 (a) Inventory Accounts Payable.. 900,000 900,000 (b) Accounts Payable ... Inventory ..... 90,000 90,000 BRIEF EXERCISE 5-5 (Continued) 810,000 (c) Accounts Payable ($900,000 - $90,000) ......... Inventory ($810,000 X 2%)..... Cash ($810,000 - $16,200)....... ($900,000 - $90,000 - $810,000); (Amt, purch. - Amt. returned - Accts, pay.) (5810,000 x 2% - $16,200): (Accts. pay x Disc. % = Reduction in inv. acct.) (5810,000 - $16,200 = $793,800): (Accts. pay. - Disc. Amt. = Cash pmt.) 16,200 793,800 BRIEF EXERCISE 5-5 (a) Inventory Accounts Payable.. 900,000 900,000 (b) Accounts Payable ... Inventory ..... 90,000 90,000 BRIEF EXERCISE 5-5 (Continued) 810,000 (c) Accounts Payable ($900,000 - $90,000) ......... Inventory ($810,000 X 2%)..... Cash ($810,000 - $16,200)....... ($900,000 - $90,000 - $810,000); (Amt, purch. - Amt. returned - Accts, pay.) (5810,000 x 2% - $16,200): (Accts. pay x Disc. % = Reduction in inv. acct.) (5810,000 - $16,200 = $793,800): (Accts. pay. - Disc. Amt. = Cash pmt.) 16,200 793,800