Answer and Explanation:
The journal entries are shown below:
a. On April 5
Merchandise Inventory $28,000
To Accounts Payable $28,000
(Being the merchandise purchased on the account is recorded)
On April 6
Merchandise Inventory $700
To Cash $700
(Being freight cost is paid is recorded)
On April 7
Equipment $30,000
To Accounts Payable $30,000
(Being equipment purchased on the account is recorded)
On April 8
Accounts Payable $3,600
To Merchandise Inventory $3,600
(Being returned inventory is recorded)
On April 15
Accounts Payable ($28,000 - $3,600) $24,400
To Cash $23,912
To Merchandise Inventory ($24,400 × 2%) $488
(Being payment is made)
b. On May 4
Accounts Payable ($28,000 - $3,600) $24,400
To Cash $24,400
(Being payment is made)
