please explain chapter 7

Evans Company uses a single-column purchases journal, a cash payments journal, and a general journal to record transactions with its suppliers and others. Record the following transactions in the appropriate journals. Transactions 5 Purchased merchandise on account for $20,000 from Glover Company. Terms: 2/10, 1/30; FOB shipping point. Paid $7,200 to Federated Insurance Company for a two-year fire insurance policy. Purchased store supplies on account for $700 from Hicks Supply Company. Terms: 2/10, n/30. I Purchased merchandise on account for $14,000 from Bates Corporation. Terms: 2/10, n/30; FOB shipping point. Oct. Oct. 6 Oct. 8 Oct. 11 Oct. 13 Oct. 15 Oct. 16 Oct. 21 Oct. 25 Oct. 31 Granted a reduction of $3,000 to Bates Corporation for merchandise purchased on October 11 and returned because of damage. Paid Glover Company for merchandise purchased on October 5, less discount. Purchased merchandise for $8,000 cash from Clements Company. I Paid Bates Corporation for merchandise purchased on October 11, less merchandise returned on October 13, less discount. Purchased merchandise on account for $22,000 from Dixon Company. Terms: 2/10, n/30; FOB shipping point. Purchased office equipment for $30,000 cash from Roberts Office Supply Company. Date Date Account Credited Explanation EVANS COMPANY Purchases Journal Ref. I EVANS COMPANY General Journal Ref. Merchandise Inventory Dr. Accounts Payable Cr. Debit G1 Credit P1