Question

Exercise 4-3 Recording purchases, purchases returns, and purchases allowances LO P1 

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

 Apr. 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.

 3 Paid s390 cash tor shipping charges on the April 2 purchase.

 4 Returned to Lyon Company unacceptable merchandise that had an invoice price of s650.

 17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise. 18 Purchased s5,700 of merchandise from Frist Corp. with credit terms of 1/10, n/30, invoice dated April 18, and FoB destination.

 21 After negotiations, received from Frist a $500 allowance toward the s5,700 owed on the April 18 purchase. 28 Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount.

Answer 1