Change the narrative style by using indirect speeches :

"I will pay for it." he said. "I broke it. I brought the axe down careless." "But no one hits accurately every time." I told him, "The fault was in the wood of the handle. I will see the man from whom I bought it." "Thanks" he said.

Jerry told me that he would pay for it. He added that he had broken it. He further added that he had brought the axe down careless. I (the authoress) contradicted that no one hit accurately every time. I (the authoress) added that the fault had been in the wood of the handle. I (the authoress) further added that I (the authoress) would see the man who I (the authoress) had bought it from. He thanked me (the authoress).