Ferguson Bike Shop records inventory purchases as net of available cash discounts and follows a standard practice of taking all discounts for early payment offered by its suppliers. The company made a major inventory purchase on credit during the current year for $$200,000.$ The supplier offered a $2$ percent discount for early payment. However, a new employee responsible for managing accounts payable was not aware of the company$$s policy to take all cash discounts offered.

Required:

Record the inventory purchase followed by Ferguson$$s payment of the invoice amount without the discount taken.

Record the inventory purchase followed by Ferguson$$s payment of the invoice amount with the discount taken.