Question

3 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. nts Apr. eBook 2 Purchased $5,700 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 $400. 17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise. 18 Purchased $10,700 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 $10,700 owed on the April 18 purchase. 28 Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount. Hint Ask View transaction list references Journal entry worksheet < 1 2 3 4 5 6 7 > Purchased $5,700 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. Note: Enter debits before credits. General Journal Debit Credit Date Apr 02 Record entry Clear entry View general journal

Answer 1

Journal entries

Date	General Journal	Debit	Credit
Apr 02	Merchandise inventory	5700
	Account payable		5700
Apr 03	Merchandise inventory	350
	Cash		350
Apr 04	Account payable	400
	Merchandise inventory		400
Apr 17	Account payable (5700-400)	5300
	Cash (5300*98%)		5194
	Merchandise inventory		106
Apr 18	Merchandise inventory	10700
	Account payable		10700
Apr 21	Account payable	500
	Merchandise inventory		500
Apr 28	Account payable (10700-500)	10200
	Cash (10200*99%)		10098
	Merchandise inventory		102