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.2Purchased $4,200 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point.3Paid $290 cash for shipping charges on the April 2 purchase.4Returned to Lyon Company unacceptable merchandise that had an invoice price of $750.17Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise.18Purchased $7,700 of merchandise from Frist Corp. with credit terms of 1/10, n/30, invoice dated April 18, and FOB destination.21After negotiations, received from Frist a $500 allowance toward the $7,700 owed on the April 18 purchase.28Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount.