Question

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

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 $4,100 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. 3 Paid $350 cash for shipping charges on the April 2 purchase. 4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $650. 17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise. 18 Purchased $7,500 of merchandise from Frist Corp. with credit terms of 1/1e, n/3e, invoice dated April 18, and FOB destination. 21 After negotiations, received from Frist a $500 allowance toward the $7,500 owed on the April 18 purchase. 28 Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount. View transaction list Journal entry worksheet

Answer 1

No.	Date	General Journal	Debit	Credit
1	April 02	Merchandise Inventory	$4100
		Account Payable-Lyon		$4100
2	April 03	Merchandise Inventory	$350
		Cash		$350
3	April 04	Account Payable-Lyon	$650
		Merchandise Inventory		$650
4	April 17	Account Payable-Lyon	$3450
		Merchandise Inventory ($3450 * 2%)		$69
		Cash		$3381
5	April 18	Merchandise Inventory	$7500
		Account Payable-Frist		$7500
6	April 21	Account Payable-Frist	$500
		Merchandise Inventory		$500
7	April 28	Account Payable-Frist	$7000
		Merchandise Inventory		$70
		Cash		$6930