Answer and Explanation:
The journal entries are shown below:
On April 1
Account receivable Dr $4,000
To Sales revenue $4,000
(Being the sale of the merchandise is recorded)
For recording this we debited the account receivable as it increased the assets and credited the sales revenue as it also increased the sales
Cost of goods sold Dr $2,500
To Merchandise inventory $2,500
(Being the cost of goods sold is recorded)
For recording this we debited the cost of goods sold as it increased expenses and credited the inventory as it reduced the assets
On April 2
Merchandise Inventory Dr $8,000
To Account payable $8,000
(Being the purchase of merchandise is recorded)
For recording this we debited the inventory as it increased the assets and credited the account payable as it also increased the liabilities
On April 4
Merchandise Inventory Dr $1,000
To Account payable $1,000
(Being the purchase of merchandise is recorded)
For recording this we debited the inventory as it increased the assets and credited the account payable as it also increased the liabilities
On April 10
Cash $3,920
Sales discount $80 ($4,000 × 2%)
To Account receivable $4,000
(Being the cash receipts is recorded)
For recording this we debited the cash as it increased the assets and credited the account receivable as it reduced the assets plus the discount is debited to sales discount
On April 11
Account payable $8,000
To Merchandise inventory $80 ($8,000 × 1%)
To Cash $7,920
(Being the cash paid is recorded)
For recording this we debited the account payable as it reduced the liabilities and credited the cash as it reduced the assets plus the discount is credited to merchandise inventory
