Answer and Explanation:
The journal entries are as follows
1. On April 5
Merchandise Inventory $23,000
To Accounts Payable $23,000
(Being the merchandise purchased on the account is recorded)
For recording this we debited the merchandise inventory as it increased the assets and credited the account payable as it increased the liabilities
2. On April 6
Merchandise Inventory $900
To Cash $900
(Being freight cost is paid is recorded)
For recording this we debited the merchandise inventory as it increased the assets and credited the cash as it decreased the assets
3. On April 7
Equipment $26,000
To Accounts Payable $26,000
(Being equipment purchased on the account is recorded)
For recording this we debited the equipment as it increased the assets and credited the account payable as it increased the liabilities
4. On April 8
Accounts Payable $3,000
To Merchandise Inventory $3,000
(Being returned inventory is recorded)
For recording this we debited the account payable as it decreased the liabilities and credited the merchandise inventory as it decreased the assets
5. On April 15
Accounts Payable ($23,000 - $3,000) $20,000
To Cash $19,600
To Merchandise Inventory ($20,000 × 2%) $400
(Being payment is made is recorded)
For recording this we debited the account payable as it decreased the liabilities and credited the merchandise inventory and cash as it decreased the assets
