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 $6,700 of merchandise fron Lyon Conpany with credit teras of 2/15, 1/60, invoice dated April 2, and 3 Paid $250 cash for shipping charges on the April 2 purchase. 4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $700. 18 Purchased $12,700 of merchandise from Frist Corp. with credit terns of 1/10, 1/30, invoice dated April 18, and 17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise FOB destination. 21 After negotiations, received from Frista $500 allowance toward the $12,708 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

Answer 1

Date	General Journal	Debit	Credit
April 02	Merchandise inventory	$6,700
	Accounts payable-Lyon		$6,700
April 03	Merchandise inventory	$250
	Cash		$250
April 04	Accounts payable-Lyon	$700
	Merchandise inventory		$700
April 17	Accounts payable-Lyon	$6,000
	Merchandise inventory($6,000 * 2%)		$120
	Cash		$5,880
April 18	Merchandise inventory	$12,700
	Accounts payable-Frist		$12,700
April 21	Accounts payable-Frist	$500
	Merchandise inventory		$500
April 28	Accounts payable-Frist	$12,200
	Cash($12,200 * 1%)		$12,078
	Merchandise inventory		$122