Prepare journal entries to record the following transactions for a retail store. The company uses a perpetual inventory system and the gross method. April 2 Purchased $3,200 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. April 3 Paid $280 cash for shipping charges on the April 2 purchase. April 4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $600. April 17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise. April 18 Purchased $5,700 of merchandise from Frist Corporation with credit terms of 1/10, n/30, invoice dated April 18, and FOB destination. April 21 After negotiations over scuffed merchandise, received from Frist a $500 allowance toward the $5,700 owed on the April 18 purchase. April 28 Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount. 1. Purchased $3,200 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. 2.Paid $280 cash for shipping charges on the April 2 purchase. 3. Returned to Lyon Company unacceptable merchandise that had an invoice price of $600. 4. Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise. 5. Purchased $5,700 of merchandise from Frist Corp. with credit terms of 1/10, n/30, invoice dated April 18, and FOB destination. 6. After negotiations over scuffed merchandise, received from Frist a $500 allowance toward the $5,700 owed on the April 18 purchase. 7 Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Prepare journal entries to record the following transactions for a retail store. The company uses a perpetual inventory system and the gross method.

April 2	Purchased $3,200 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point.
April 3	Paid $280 cash for shipping charges on the April 2 purchase.
April 4	Returned to Lyon Company unacceptable merchandise that had an invoice price of $600.
April 17	Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise.
April 18	Purchased $5,700 of merchandise from Frist Corporation with credit terms of 1/10, n/30, invoice dated April 18, and FOB destination.
April 21	After negotiations over scuffed merchandise, received from Frist a $500 allowance toward the $5,700 owed on the April 18 purchase.
April 28	Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount.