How do you journal when an invoice is received and journal the payment with discount?

When an invoice is received, you would journal the transaction by debiting the appropriate expense or asset account and crediting Accounts Payable for the total amount of the invoice. When the payment is made, you would debit accounts payable for the full invoice amount, credit cash for the amount paid, and record the discount by crediting a discount received or expense reduction account. This ensures accurate tracking of both liabilities and discounts received.