Answer:
Explanation:
The journal entries are shown below:
On April 5
Merchandise Inventory A/c $27,900
To Accounts payable A/c $27,900
(Being merchandise purchased on credit)
On April 6
Merchandise inventory A/c Dr $670
To Cash A/c $670
(Being freight is paid by cash)
On April 7
Equipment A/c Dr $31,600
To Accounts payable A/c $31,600
(Being equipment is purchased on credit)
On April 8
Accounts payable A/c $3,700
To Merchandise inventory A/c Dr $3,700
(Being the returned goods is recorded)
On April 15
Accounts payable A/c Dr $24,200 ($27,900 - $3,700)
To Cash A/c $23,716
To Merchandise Inventory A/c $484 ($24,200 × 2%)
(Being due amount is paid and the remaining balance is credited to the cash account)
