First image is journal entries from 5-7

Journal Entry in the books of Buyer Date Accounts Debi Credit 11-May Merchandise inventory 40,345 Accounts payable Cash 40,000 345 12-May Accounts payable 1,400 Merchandise inventory Accounts payable (40,000- merchandise inventory (38,600*3%) 1,400 20-May ay1400) 38,600 1158 37442 Cash Journal enty in the books of seller Accounts Date Debit Credit 11-May Accounts 11-May Sales 40,000 receivabloe 40,000 Cost of goods sold Merchandise inventory 30,000 30,000 12-May Sales return 1,400 Accounts receivable 1,400 Merchandise inventory Cost of goods sold 1,050 1,050 20-May Cash 38,600 1,158 Sales discount Accounts receivable 40,000