Answer:
1. Bird Company (Buyer)
Apr-02	Dr Merchandise Inventory	$20,335	
Cr Accounts Payable $20,335
Apr-08	Dr Merchandise Inventory	$25,000	
 Cr Accounts Payable $25,000
Apr-08	No entry 
Apr-12	Dr Accounts Payable	$20,335
Cr Cash $19,937
 Cr Merchandise Inventory $ 398
Apr-18 Dr Cash	$ 2,000	
Cr Merchandise Inventory $ 2,000
Apr-23 Dr Accounts Payable	$25,000	
 Cr Cash $24,750
Cr Merchandise Inventory $ 250
Apr-24 Dr Merchandise Inventory	$11,200	
 Cr Accounts Payable $11,200
Apr-26 Dr Merchandise Inventory	$280	
 Cr Cash $280
2.Swan Company (Seller)
Apr-02 Dr Accounts Receivable	$20,335
Cr Sales Revenue $19,900
 Cr Cash $435
Dr Cost of Goods Sold	$12,500	
 Dr Merchandise Inventory $12,500
Apr-08 Dr Accounts Receivable	$ 25,000	
 Cr Sales Revenue $ 25,000
Dr Cost of Goods Sold	$15,000	
 Cr Merchandise Inventory $15,000
Apr-08 Dr Delivery Expense	$650	
 Cr Cash $650
Apr-12 Dr Cash	$19,937
Dr Sales Discounts	$ 398
Cr Accounts Receivable $20,335
Apr-18 Dr Sales Returns and allowances	$ 2,000	
Cr Cash $ 2,000
Apr-23	Dr Cash	$ 24,750	
Dr Sales Discounts	$ 250	
 Cr Accounts Receivable $25,000
Apr-24 Dr Accounts Receivable	$11,200	
 Cr Sales Revenue $11,200
Dr Cost of Goods Sold	$6,700	
Cr Merchandise Inventory $6,700
Apr-26	No entry 
Explanation:
1. Preparation of the journal entry for Bird Company (the buyer).
Bird Company (Buyer)
Apr-02	Dr Merchandise Inventory	$20,335	
Cr Accounts Payable $20,335
($19,900+$435)
Apr-08	Dr Merchandise Inventory	$25,000	
 Cr Accounts Payable $25,000
Apr-08	No entry 
Apr-12	Dr Accounts Payable	$20,335
($19,900+$435)	
 Cr Cash $19,937
($20,334-$398)
 Cr Merchandise Inventory $ 398
($19,900*2%)
Apr-18 Dr Cash	$ 2,000	
Cr Merchandise Inventory $ 2,000
Apr-23 Dr Accounts Payable	$25,000	
 Cr Cash $24,750
($25,000-$250)
 Cr Merchandise Inventory $ 250
(1%*$25,000)
Apr-24 Dr Merchandise Inventory	$11,200	
 Cr Accounts Payable $11,200
Apr-26 Dr Merchandise Inventory	$280	
 Cr Cash $280
2. Preparation of the journal entry for Bird Company the (Seller).
Swan Company (Seller)
Apr-02 Dr Accounts Receivable	$20,335
($19,900+$435)
Cr Sales Revenue $19,900
 Cr Cash $435
Dr Cost of Goods Sold	$12,500	
 Dr Merchandise Inventory $12,500
Apr-08 Dr Accounts Receivable	$ 25,000	
 Cr Sales Revenue $ 25,000
Dr Cost of Goods Sold	$15,000	
 Cr Merchandise Inventory $15,000
Apr-08 Dr Delivery Expense	$650	
 Cr Cash $650
Apr-12 Dr Cash	$19,937
($20,335-$398)	
Dr Sales Discounts	$ 398
(2%*$19,900)
Cr Accounts Receivable $20,335
(19,900+435)
Apr-18 Dr Sales Returns and allowances	$ 2,000	
Cr Cash $ 2,000
Apr-23	Dr Cash	$ 24,750	
Dr Sales Discounts	$ 250	
(1%*25,000)
 Cr Accounts Receivable $25,000
Apr-24 Dr Accounts Receivable	$11,200	
 Cr Sales Revenue $11,200
Dr Cost of Goods Sold	$6,700	
Cr Merchandise Inventory $6,700
Apr-26	No entry