books of Buyer or Mars musical instrument company :

Date Account Title Debit Credit
July 2 Merchandise Inventory 48,000
Account payable 48,000

July 5 Merchandise inventory 1,104

Cash 1,104

July 6 Account Payable 2,790

Merchandise Inventory 2,790

July 31 Account Payable (48,000 - 2790) 45,210

Merchandise Inventory (45,210 ×× 0.03) 1356
Cash 43,854

In the books of seller or Tiger company:

Date Account Title Debit Credit
July 2 Account Receivables 48,000
Sales Revenues 48,000

July 5 No entry in the books of seller as

as paid by buyer
July 6 Sales Returns & Allowances 2,790
Accounts Receivables 2,790

July 31 Cash 43,854

Sales Discount 1,356
Account Receivables 42,498