Prepare journal entries to record the following transactions for a retail store. The company uses a perpetual
Question:
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 $4,600 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point.
Apr.3Paid $300 cash for shipping charges on the April 2 purchase.
Apr.4Returned to Lyon Company unacceptable merchandise that had an invoice price of $600.
Apr. 17Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise.
Apr 18Purchased $8,500 of merchandise from Frist Corp. with credit terms of 1/10, n/30, invoice dated April 18, and FOB destination.
Apr21After negotiations, received from Frist a $500 allowance toward the $8,500 owed on the April 18 purchase.
Apr 28Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount.