The Alpha Company purchased $2.5 million of merchandise on account. A & A products gives terms of 1%, 10 days, Net 20. A&A Products believes that alpha will take the discount if the discount is equal to at least an 16% return. A&A Products use the net method to record sales. The transaction was not recorded by A&A products. Assume 360 day year. Alpha paid five days past the discount period.
Make any necessary entries or adjustments that are needed.