Answer and Explanation:
The Journal entries are shown below:-
1. Merchandise inventory Dr, $72,900
To Accounts payable $72,900
(Being purchase is recorded)
Here we debited the Merchandise inventory as assets is increasing and we credited the Accounts payable as liabilities is also increasing.
2. Accounts payable Dr, $8,036 ($8,200 - ($8,200 - 2%)
To Merchandise inventory $8,036
(Being merchandise return is recorded)
Here we debited the accounts payable as liabilities is decreasing and we credited the Merchandise inventory as assets is decreasing.
3. Accounts payable Dr, $64,864 ($72,900 - $8,036)
To Cash $64,864
(Being payment is recorded)
Here we debited the accounts payable as liabilities is decreasing and we credited the cash as assets is decreasing.
