Question

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 $4,300 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. 3 Paid $260 cash for shipping charges on the April 2 purchase. 4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $550. 17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise. 18 Purchased $7.900 of merchandise from Prist Corp. with credit terns of 1/10, /30, invoice dated April 18, and Ton destination. 21 After negotiations, received from Prista $600 allowance toward the $7.900 owed on the April 18 purchase. 28 Sent check to Friat paying for the April 18 purchase, net of the allowance and the discount. View transaction list Journal entry worksheet < 2 3 4 5 6 Purchased 14.300 of merchandise from Lyon Company with credit terms of

Answer 1

		Debit	Credit
April 02	Merchandise inventory	4300
	Accounts payable—Lyon		4300
April 03	Merchandise inventory	260
	Cash		260
April 04	Accounts payable—Lyon	550
	Merchandise inventory		550
April 17	Accounts payable—Lyon	3750
	Merchandise inventory		75	=3750*2%
	Cash		3675
April 18	Merchandise inventory	7900
	Accounts payable—Frist		7900
April 21	Accounts payable—Frist	600
	Merchandise inventory		600
April 28	Accounts payable—Frist	7300
	Merchandise inventory		73	=7300*1%
	Cash		7227