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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
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 $4,600 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 $600. 17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise. 16 Purchased $8,500 of merchandise from Frist Corp. with credit terms of 1/10, n/30, invoice dated April 18, and FOB destination. 21 After negotiations, received from Frist a $500 allowance toward the $8,500 owed on the April 18 purchase. 28 Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount. Answer is not complete. No Date General Journal Debit Credit 1 Apr 02 4,600 Merchandise inventory Accounts payableLyon 4,600 2 Apr 03 300 Merchandise inventory Cash ol 300 3 Apr 04 4,000 Accounts payable-Lyon Merchandise inventory Cash 80 X 3,920 X X 4 Apr 17 8.500 Merchandise inventory Accounts payableFrist x 8,500 5 Apr 18 500 Accounts payable-Frist Merchandise inventory X 500 6 Apr 21 8.000 Accounts payable-Frist Merchandise inventory Cash olol 30 X 7.920
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