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 Apr. 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 $300 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 18 Purchased $10,700 of merchandise from Frist Corp. with credit terms of 1/10, n/30, invoice dated 21 After negotiations, received from Frist a $500 allowance toward the $10,700 owed on the April 18 28 Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount. merchandise. April 18, and FOB destination. purchase View transaction list View journal entry worksheet No Date General Journal Debit Credit Apr 02 Merchandise inventory 5,700 Accounts payable- Lyon 5,700 2 Apr 03 Merchandise inventory 300 Cash 300 Apr 04 400 Accounts payable-Lyon Merchandise inventory 400 4 Accounts payable- Lyon Merchandise inventory Cash 5,300 Apr 18 Merchandise inventory Accounts payable-Frist Apr 21 Accounts payable-Frist 500 Merchandise inventory 500 Accounts payable-Frist Merchandise inventory Cash Apr 28