Answer:
Explanation:
The journal entries are shown below:
On July 1
Merchandise Inventory A/c $10,800
To Accounts payable A/c $10,800
(Being goods purchased on credit)
On July 5
Accounts payable A/c Dr $1,500
To Merchandise Inventory A/c $1,500
(Being goods returned)
On July 8
Accounts payable A/c Dr $9,300 ($10,800 - $1,500)
To Cash A/c $9,114
To Merchandise Inventory A/c $186 ($10,800 - $1,500) × 2%
(Being due amount is paid and the remaining balance is credited to the cash account)
