Information related to harwick co. is presented below.1. on april 5, purchased merchandise from botham company for $38,700, terms 3/10, net/30, fob shipping point.2. on april 6, paid freight costs of $830 on merchandise purchased from botham.3. on april 7, purchased equipment on account for $28,900.4. on april 8, returned damaged merchandise to botham company and was granted a $5,400 credit for returned merchandise5. on april 15, paid the amount due to botham company in full. prepare the journal entries to record these transactions on the books of harwick co. under a perpetual inventory system.

Explanation:

The journal entries are shown below:

On April 5

Merchandise Inventory A/c $38,700

              To Accounts payable A/c $38,700

(Being calculator purchased on credit)

On April 6

Merchandise inventory A/c Dr $830

           To Cash A/c $830

(Being freight is paid by cash)

On April 7

Equipment A/c Dr $28,900

              To Accounts payable A/c $28,900

(Being equipment is purchased on credit)

On April 8

Accounts payable A/c Dr $5,400

    To Merchandise Inventory A/c$5,400

(Being goods returned)

On April 15

Accounts payable A/c Dr $33,300 ($38,700  - $5,400)

     To Cash A/c   $32,301                   

    To Merchandise Inventory A/c $999 ($33,300 × 3%)

(Being due amount is paid)

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