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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 Purchased
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 $5,100 of merchandise from Lyon Company with credit terms of 2/15, 1/60, invoice dated April 2, and FOB shipping point. 3 Paid $400 cash 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 $9,500 of merchandise from Frist Corp. with credit terms of 1/10, 1/30, invoice dated April 21 After negotiations, received from Frist a $400 allowance toward the $9,500 owed on the April 18 purchase. 28 Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount. No Data Answer is complete but not entirely correct. General Journal Merchandise inventory Accounts payable-Lyon Debit Credit 1 Apr 02 5,100 5,100 2 Apr 03 400 Merchandise inventory Cash 400 3 Apr 04 > Accounts payable--Lyon Merchandise inventory SS 850 850 4 Apr 17 Accounts Davable-Lyon . 4.250 No Date General Journal Debit Credit 1 Apr 02 5.100 Merchandise inventory Accounts payable-Lyon 5,100 2 Apr 03 400 Merchandise inventory Cash 400 3 Apr 04 850 Accounts payable-Lyon Merchandise inventory 850 4 Apr 17 4,250 Accounts payable-Lyon Cash Merchandise inventory 102 x 5,100 on Apr 18 9,500 Merchandise inventory Accounts payable Frist 9,500 6 Apr 21 400 Accounts payable--Frist Merchandise inventory 400 7 Apr 28 9.100 Accounts payable---Frist Cash Merchandise inventory 9,100 9,100 %
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