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b$.$ A payment of the invoice within the discount period reduces Accounts Payable and Cash for the amount of the invoice less the discount.

c$.$ Discovered that merchandise with an invoice amount of $$7,600$ purchased in $($a$)$ was defective and returned items, receiving credit.

Accounts Payable$-$Schell Co$.,$ sinf Inventory $$

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c$.$ This transaction reduces Inventory and the Accounts Payable. Since this return was made after payment was made at the discounted price, the credit will be for the cost of returned goods less the discount.

d$.$ Purchased $$5,900$ of merchandise from Schell Co$.$ on account, terms $\frac{n}{30}.$

Inventory

Accounts Payable$-$Schell Co$.$

$5,900$