According to the Publication Manual of the American Psychological Association (2019, p. 307) 9.51 Annotated Bibliographies:
Format and order references in an annotated bibliography in alphabetical order, the same as you would order entries in a reference list (see Sections 9.43-9.44)
Each annotation should be a new paragraph below its reference entry. Indent the entire annotation 0.5 in. from the left margin, the same as you would a block quotation (see Section 8.27). Do not indent the first line of the annotation.
If the annotation spans multiple paragraphs, indent the first line of the second an any subsequent paragraphs an additional 0.5 in., the same as you would a block quotation with multiple paragraphs.