Adisadvantage of the mall intercept interview method is

The correct journal entry to record the payment on July 12 is:

Accounts Payable $1,600(debit)

Discount Received $32 (credit)

Cash $1,568 (credit)

Explanation:

When Company Purchases Merchandise

Merchandise Inventory  $1,800 (debit)

Accounts Payable  $1,800 (credit)

When Company Returns some Merchandise

Accounts Payable $200 (debit)

Merchandise Inventory $200 (credit)

When Company pay for the Inventory on 12 July

Note : Payment is made within the Cash discount period and it is eligible for the 2% Cash Discount.

Accounts Payable $1,600(debit)

Discount Received $32 (credit)

Cash $1,568 (credit)