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Recording purchases, purchases returns, and purchases allowances LO P1Prepare journal entries to record the following transactions for a retail store. The company uses a perpetual inventory system and
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27 votes
Recording purchases, purchases returns, and purchases allowances LO P1Prepare 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 $4,200 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point.3 Paid $220 cash for shipping charges on the April 2 purchase.4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $750.17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise.18 Purchased $7,700 of merchandise from Frist Corp. with credit terms of 1/10, n/30, invoice dated April 18, and FOB destination.21 After negotiations, received from Frist a $500 allowance toward the $7,700 owed on the April 18 purchase.28 Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount.View transaction list Journal entry worksheet 2 3 4 6 Purchased $3,300 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. Note: Enter debits before credits Date General Journal Debit Credit Apr 02 Record entry Clear entry View general journal

User Raphael Rafatpanah
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11 votes

Answer: Check attachment

Step-by-step explanation:

The journal entries to record the following transactions for a retail store has been prepared and attached.

Note:

April 17:

Account payable - Lyon Company = $4200 - $750 = $3450

Merchandise inventory = $3450 × 2% = $69

Cash = $3450 - $69 = $3381

April 28:

Account payable - First Corp = $7700 - $500 = $7200

Merchandise inventory = $7200 × 1% = $72

Cash = $7200 - $72 = $7128

Recording purchases, purchases returns, and purchases allowances LO P1Prepare journal-example-1
User Ryanb
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