Solution:
Calculate the amount of accounts payable. 
Purchases = $43,250 
Discount percentage = 2% 
Freight charges = $650  
Amount of accounts payable = [(Purchases — Discount) + Freight] = [Purchases — (Purchases x 2%) + Freight] 
= [$43,250— ($43, 250 x 2%) + $650] (1) 
= $43,250 — $865 + $650 
= $43,035  
Merchandise Inventory is an asset and it is increased by $43,035. Therefore, the debit Merchandise Inventory account with $43,035. 
• Accounts payable is a liability and it is increased by $43,035. 
Therefore, credit accounts payable account with $43,035.  
Record the journal entry of Company N.  
Date     Account Title & Explanation    Post Ref.   Debit ($)   Credit ($) 
5th Mar    Merchandise Inventory                            19,175 
                   Accounts payable                                                      19,175                
         (To record purchase on account)  
Table (2)  
Merchandise Inventory is an asset and it is increased by $19,175. 
Therefore, debit Merchandise Inventory account with $19,175. 
• Accounts payable is a liability and it is increased by $19,175. 
Therefore, credit accounts payable account with $19,175.  
Record the journal entry of Company N.  
Date     Account Title&Explanation    Post Ref.   Debit ($)   Credit ($) 
March 10      Accounts payable                            43,035 
                               Cash                                                           43,035 
(To record the payment against accounts payable)  
Table (3)  
• Accounts payable is a liability and it is decreased by $43,035. Therefore, debit accounts payable account with $43,035. 
• Cash is an asset and it is decreased by $43,035. Therefore, credit cash account with $43,035.  
Record the journal entry of Company N.  
Date      Account Title&Explanation   Post Ref.   Debit ($)   Credit ($) 
March 13    Merchandise Inventory                       15,239 
                    Accounts payable                                                15,239 (2) 
         (To record purchase on account)  
Table (4)  
Calculate the amount of accounts payable. 
Purchases = $15,550 
Discount percentage = 2%  
Amount of accounts payable = (Purchases — Discount) = Purchases — (Purchacss x 2%) 
= $15,550 - ($15,550 x 2%) (2) 
= $15,550 - $311 
= $15, 239  
Merchandise Inventory is an asset and it is increased by $15,239. Therefore, debit Merchandise Inventory account with 315,239. 
• Accounts payable is a liability and it is increased by $15,239. 
Therefore, credit accounts payable accounts with $15,239.  
Record the journal entry of Company N.  
Date   Account Title & Explanation    Post Ref.   Debit ($)   Credit ($) 
Mar14       Accounts payable                                  3,675 (3) 
              Merchandise Inventory                                                3,675 
           (To record purchase return)  
Table (5) 
Calculate the amount of accounts payable. 
Purchases return = $3,750 
Discount percentage = 2%  
Amount of accounts payable = (Purchases return — Discount) =Purchases return — (Purchases return x 2%) 
= $3,750 - ($3, 750 x 2%) 
= $3,750 - $75 
= $3,675  (3)  
• Accounts payable is a liability and it is decreased by $3,675. 
Therefore, debit accounts payable account with $3,675. 
• Merchandise Inventory is an asset and it is decreased by $3,675. Therefore, credit Merchandise Inventory account with $3,675.  
Record the journal entry of Company N