QUESTION ONE [20]

Details of an acquisition of inventory by Rice Limited are as follows: Goods for resale where all purchased on credit on 1 July 2019. The marked price was R30 000, but a trade discount of R2 000 was granted along with an early settlement discount of 20% off the discounted price. The settlement discount was offered on the condition that the amount due was paid in full by 31 August 2019. The inventory was paid for on 2 September 2019 due to cash flow problems.

Required: Provide journal entries relating to the acquisition of the inventory in Rice Limiteds accounting records.