Answer:
Sept. 1
Merchandise $8,000 (debit)
Accounts Payable $8,000 (credit)
<em>Merchandise purchased on credit</em>
Sept. 3
Accounts Payable $1,000 (debit)
Merchandise $1,000 (credit)
<em>Merchandise Returned to Suppliers</em>
Sept. 7
Merchandise $1,500 (debit)
Accounts Payable $1,500 (credit)
<em>Merchandise purchased on credit</em>
Sept. 14
Accounts Payable $1,500 (debit)
Cash $1,470 (credit)
Discount received $30 (credit)
<em>Payment of amounts due and recognition of cash discount</em>
Sept. 20
Accounts Payable $7,000 (debit)
Cash (credit)
<em>Payments of Amount due</em>
Explanation:
Journal Entries and their narrations have been prepared above.