Information related to harwick co. is presented below. 1. on april 5, purchased merchandise on account from botham company for $23,000, terms 2/10, net/30, fob shipping point. 2. on april 6, paid freight costs of $900 on merchandise purchased from botham. 3. on april 7, purchased equipment on account for $26,000. 4. on april 8, returned damaged merchandise to botham company and was granted a $3,000 credit for returned merchandise. 5. on april 15, paid the amount due to botham company in full.

Explanation:

The journal entries are shown below:

On April 5

Inventory A/c Dr $23,000

     To Account payable A/c $23,000

(Being the inventory purchased is recorded)

On April 6

Inventory A/c Dr $900

   To Cash A/c $900

(Being the freight cost is paid)

On April 7

Equipment A/c Dr $26,000

    To Account payable A/c $26,000

(Being the equipment is purchased on credit)

On April 8

Account payable A/c Dr $3,000

  To Inventory A/c $3,000

(Being the returned inventory is recorded)

On April 15

Account payable A/c Dr $20,000   ($23,000 - $3,000)

    To Inventory A/c $400     ($20,000 × 2%)

    To Cash A/c $19,600

(Being the amount due is paid)

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answer; conceptual skills;