Answer:
July 19;
Dr: Cash -----------------$784
Dr: Sales Discount----$16
Cr: Accounts Receivable--------$800
Explanation:
On July 19, the business must have factored in the $100 goods that was returned on July 12, so this will automatically reduce the accounts receivable to $800($900 - $100).
The discount does not reflect if paid on the last day of the month, so the discount of 2percent is still on as at July 19. The discount will be $16(2% of $800) and the amount of cash to be expected will be $784($800-16).
Therefore, the adjusting entry will be:
July 19;
Dr: Cash -----------------$784
Dr: Sales Discount----$16
Cr: Accounts Receivable--------$800
