Billy Bob's B-B-Q paid cash to Pork Distributors. 418 covering Purchase Innoice No.1921 for 440 less a 5% discount. 22.00. What is the journal entry for Billy Bob's B-B-Q to record this transaction? Debit Accounts Payable/Pork Distributors, 418 credit Cash. 418. Debit Accounts Payable/Pork Distributors. 440 credit Cash, 440. Debit Accounts Payable/Pork Distributors, 440 credit Purchases Discount 22 and credit Cash 418. Debit Purchases Discount 22 and debit Cash 418 credit Accounts Payable/Pork Distributors 440.

The transaction detailed in the question describes Billy Bob's B-B-Q paying off part of its Accounts Payable to Pork Distributors. Given the cash being paid is 440, meaning the full invoice price is indeed worked off, we need an accounting entry that both signifies the payment made as well as accounts for the discount as a form of savings. Thus, the correct journal entry would be:Debit Accounts Payable/ Pork Distributors for 22, accounting for the discount perceived due to early payment;and Credit Cash for 440; credit Purchases Discount 418.