Exercise 5-4 Recording entries for merchandise purchases LO P1

Apr. 2	Purchased merchandise from Lyon Company under the following terms: $3,600 price, invoice dated April 2, credit terms of 2/15, n/60, and FOB shipping point.
3	Paid $202 for shipping charges on the April 2 purchase.
4	Returned to Lyon Company unacceptable merchandise that had an invoice price of $850.
17	Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise.
18	Purchased merchandise from Frist Corp. under the following terms: $7,650 price, invoice dated April 18, credit terms of 2/10, n/30, and FOB destination.
21	After negotiations, received from Frist a $2,142 allowance on the April 18 purchase.
28	Sent check to Frist paying for the April 18 purchase, net of the discount and allowance.

Prepare journal entries to record the above transactions for a retail store. Assume a perpetual inventory system.

1

Purchased merchandise from Lyon Company under the following terms: $3,600 price, invoice dated April 2, credit terms of 2/15, n/60, and FOB shipping point.

2

Paid $202 for shipping charges on the April 2 purchase.

3

Record the return of unacceptable merchandise to Lyon Company that had an invoice price of $850.

4

Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise.

5

Purchased merchandise from Frist Corp. under the following terms: $7,650 price, invoice dated April 18, credit terms of 2/10, n/30, and FOB destination.

6

After negotiations, received from Frist a $2,142 allowance on the April 18 purchase.

7

Sent check to Frist paying for the April 18 purchase, net of the discount and allowance.