Final answer:
Swifty Industries should record a purchase discount of $192, calculated by applying the 3% cash discount on the adjusted net purchase amount of $6,400 after accounting for the trade discount and returns.
Step-by-step explanation:
On February 1, 2025, Swifty Industries purchased $10,000 of merchandise on account, subject to a trade discount of 10% and credit terms of 3/15, n/60. On February 4, 2025, the company returned $2,600 of the merchandise. Hence, the adjusted purchase amount before the cash discount would be:
$10,000 - 10% of $10,000 (trade discount) = $9,000 (net purchase amount)
From this net purchase amount, the returned merchandise value is subtracted:
$9,000 - $2,600 = $6,400 (adjusted net purchase amount
Swifty Industries made the payment on February 13, 2025, which falls within the discount period outlined in the credit terms (3/15). Therefore, the company is entitled to a cash discount of 3% on the adjusted net purchase amount:
3% of $6,400 = $192
This means the correct amount of the purchase discount to be recorded is $192.