Question

 Apr. 2 Purchased merchandise from Lyon Company under the following terms: $4,600 price, Invoice dated April 2, credit terms of 2/15, n/60, and FOB shipping point. 

 3 Paid $300 for shipping charges on the April 2 purchase.

 4 Retumed to Lyon Company unacceptable merchandise that had an invoice price of $600.

 17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise.

 18 Purchased merchandise from Frist Corp. under the following terms: $8,500 price, Invoice dated April 18, credit terms of 2/10, n/30, and FOB destination. 21 After negotiations, received from Frist a $1,100 allowance on the April 18 purchase.

 28 Sent check to Frist paying for the April 18 purchase, net of the discount and allowance.

 Prepare journal entries to record each of the above merchandising transactions assuming that the periodic inventory system is used.

Answer 1

Date	Account Title and Explanation	Debit	Credit
Apr-02	Purchase	$ 4,600
	Accounts payable-Lyon		$ 4,600
	(To record purchase merchandise from Lyon company )
Apr-03	Transportation - in	$ 300
	Cash		$ 300
	( To record shipping charges paid on above purchase )
Apr-04	Accounts payable-Lyon	$ 600
	Purchase returns & Allowances		$ 600
	(To record purchase return to Lyon company )
Apr-17	Accounts payable-Lyon ($4,600 -$600)	$ 4,000
	Purchase discount {($4600 - $600)* 2% }		$ 80
	Cash ($ 4,000 -$ 80 )		$ 3,920
	(To record cash paid to Lyon company for above purchase )
Apr-18	Purchase	$ 8,500
	Accounts payable-Frist corp.		$ 8,500
	(To record purchase merchandise from Frist corp. )
Apr-21	Accounts payable-Frist corp.	$ 1,100
	Purchase returns & Allowances		$ 1,100
	(To record received allowance on above purchase)
Apr-28	Accounts payable-Frist ($8,500 -$1,100)	$ 7,400
	Purchase discount {($8,500 -$1,100)*2%}		$ 148
	Cash   ($ 7,400 -$ 148 )		$ 7,252
	(To record cash paid to Frist corp. for above purchase )