pril 2 Purchased $3,500 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point.

pril 3 Paid $196 cash for shipping charges on the April 2 purchase.

pril 4 Returned to Lyon Company unacceptable merchandise that had an

invoice price of $800.

ril 17 Sent a check to Lyon Company for the April 2 purchase, net of the

discount and the returned merchandise.

ril 18 Purchased $7,700 of merchandise from Frist Corporation with credit terms of 1/10, n/30, invoice dated April 18, and FOB destination.

ril 21 After negotiations over scuffed merchandise, received from Frist a $400 allowance toward the $7,700 owed on the April 18 purchase.

ril 28 Sent check to Frist paying for the April 18 purchase, net of the

allowance and the discount.

Exercise 5-22A (Algo) Periodic-Recording purchases, returns, and allowances LO P5

Prepare journal entries to record each of the following merchandising transactions assuming that the buyer uses the periodic inventory system and the gross method.