Prepare journal entries to record the following transactions for a retail store. The company uses a perpet- ual inventory system and the gross method. 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 Apr. 2 Paid S300 cash for shipping charges on the April 2 purchase. Returned to Lyon Company unacceptable merchandise that had an invoice price of S600. Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise. 17 18 Purchased S8.500 of merchandise from Frist Corp. with credit terms of 1/10. n/30, invoice dated April 18. and FOB destination. After negotiations. received from Frist a S500 allowance toward the S8.500 owed on the April 18 purchase. Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount. 21

Prepare journal entries to record the following transactions for a retail store. The company uses a perpet- ual inventory system and the gross method. 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 Apr. 2 Paid S300 cash for shipping charges on the April 2 purchase. Returned to Lyon Company unacceptable merchandise that had an invoice price of S600. Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise. 17 18 Purchased S8.500 of merchandise from Frist Corp. with credit terms of 1/10. n/30, invoice dated April 18. and FOB destination. After negotiations. received from Frist a S500 allowance toward the S8.500 owed on the April 18 purchase. Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount. 21

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter9: Sales And Purchases

Section: Chapter Questions

Problem 7E: Record the following transactions for a perpetual inventory system in general journal form. a. Sold...

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