Question

Exercise 5-5 Recoraing purcnases, purcnases returns, ana purcnases allowances Lumi 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 $3,200 of merchandise from Lyon Company with credit terms of 2/15, 1/60, invoice dated April 2, and FOB shipping point. 3 Paid $300 cash for shipping charges on the April 2 purchase. 4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $900. 17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise 18 Purchased $5,700 of merchandise from Frist Corp. with credit terms of 1/10, n/3e. invoice dated April 18, and FOB destination. 21 After negotiations, received from Frist a $400 allowance toward the $s, vee 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 > 5 7 3 4 6 1 2 Purchased $3,200 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 oredits Debit Credit General Journal Date Apr 02

Answer 1

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CR DR $3,200 $3,200 100 100 900 900 2300 2 SOLUTION JOURNAL ENTRIES 3 DATE DETAILS 4 Apr-02 INVENTORY 5 ACCOUNT PAYBLE 6 (To record goods purchased on account from Lyon company) 7 Apr-03 INVENTORY 8 CASH 9 (To record payment of freight on goods purchased) 10 Apr-04 ACCOUNT PAYBLE 11 INVENTORY 12 (To record return of goods purchased from LYON COMPANY) 13 Apr-17 ACCOUNT PAYBLE 3200-900 14 CASH 2300-46 15 INVENTORY 2300*2% 16 (To record payment within discount period) 17 Apr-18 INVENTORY 18 ACCOUNT PAYBLE 19 (To record goods purchased on account from Frist corp.) 20 Apr-21 ACCOUNT PAYBLE 21 INVENTORY 22 (to record allowance received from Frist corp.) 23 Apr-28 ACCOUNT PAYBLE 5,700-400 24 CASH 25 INVENTORY 5300*1% 26 (To record payment within discount period) 2254 46 5,700 5700 400 400 5,300 5,247 53