On April 18, 2016, the Bontanica Company, a garden retailer, purchased $9,800 of seed, terms 2/10, n/30, from Whitetail Seed Co. Even though the discount period had expired, Shelby Davey subtracted the discount of $196 when he processed the documents for payment on May 1, 2016.

1. Give the journal entry to record the purchase.
2. Give the journal entry to record payment of the invoice within the discount period.
3. Give the journal entry to record payment of the incoice outside the discount period.
4. Discuss whether Shelby Davey behaved in a professional manner by subtracting the discount, even though the discount period had expired. What effect does this have on the companies financial statements? (2 paragraphs)