- Prepare Journal Entries To Record The Following Transactions For A Retail Store The Company Uses A Perpetual Inventory 1 (216.14 KiB) Viewed 56 times
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 $3,100 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. April 3 Paid $280 cash for shipping charges on the April 2 purchase. Returned to Lyon Company unacceptable merchandise that had an invoice price of $900. April 4 April 17 April 18 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise. Purchased $5,500 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 $400 allowance toward the $5,500 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. > Answer is not complete. General Journal Debit Credit No 1 Date April 02 Purchases 3,100✔ 2 April 03 280✔ 3 April 04 900✔✔ 4 April 17 2,200✔ 5 April 18 5,500✔ 6 April 21 400✓ April 28 5,100✔ 7 Accounts payable-Lyon Transportation-in Cash Accounts payable Lyon Merchandise inventory Accounts payable Lyon Purchases discounts Cash Purchases Accounts payable-Frist Accounts payable-Frist Purchases returns and allowances Accounts payable-Frist Cash X X › ✓ ✓ X ✓ X ✓ ✓ X › › 3,100✔ 280✔ 900✔ 44✓ 2,156 5,500 400 5,100 X