Prepare journal entries to record each of the following merchandising transactions assuming that the buyer uses the periodic inve system and the gross method. April 2 Purchased $6,900 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, FOB shipping point. April 3 Paid $386 cash for shipping charges on the April 2 purchase. April 4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $900. April 17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise. April 18 Purchased $14,500 of merchandise from Frist Corporation with credit terms of 1/10, n/30, invoice dated 18, and FOB destination. April 21 After negotiations over scuffed merchandise, received from Frist a $500 allowance toward the $14,500 owe the April 18 purchase. April 28 Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount.
Prepare journal entries to record each of the following merchandising transactions assuming that the buyer uses the periodic inve system and the gross method. April 2 Purchased $6,900 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, FOB shipping point. April 3 Paid $386 cash for shipping charges on the April 2 purchase. April 4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $900. April 17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise. April 18 Purchased $14,500 of merchandise from Frist Corporation with credit terms of 1/10, n/30, invoice dated 18, and FOB destination. April 21 After negotiations over scuffed merchandise, received from Frist a $500 allowance toward the $14,500 owe the April 18 purchase. April 28 Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Prepare journal entries to record each of the following merchandising transactions assuming that the buyer uses the periodic invent
system and the gross method.
April 2 Purchased $6,900 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2,
FOB shipping point.
April 3 Paid $386 cash for shipping charges on the April 2 purchase.
April 4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $900.
April 17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise.
April 18 Purchased $14,500 of merchandise from Frist Corporation with credit terms of 1/10, n/30, invoice dated Ap
18, and FOB destination.
April 21 After negotiations over scuffed merchandise, received from Frist a $500 allowance toward the $14,500 owed
the April 18 purchase.
April 28 Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount.
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Journal entry worksheet
<
1
2
Note: Enter debits before credits.
Date
April 03
Paid $386 cash for shipping charges on the April 2 purchase.
3
Cash
4 5 6 7
General Journal
Debit
386
Credit
386
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