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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. April 2
Prepare journal entries to record the following transactions for a retail store. The company uses a perpetual inventory system and the gross method.
April 2 | Purchased $4,500 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. |
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April 3 | Paid $320 cash for shipping charges on the April 2 purchase. |
April 4 | Returned to Lyon Company unacceptable merchandise that had an invoice price of $400. |
April 17 | Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise. |
April 18 | Purchased $8,300 of merchandise from Frist Corporation with credit terms of 1/10, n/30, invoice dated April 18, and FOB destination. |
April 21 | After negotiations over scuffed merchandise, received from Frist a $600 allowance toward the $8,300 owed on the April 18 purchase. |
April 28 | Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount. |
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