Prepare journal entries to record each of the following
merchandising transactions assuming that the buyer uses the
periodic inventory system and the gross method.
Apr. | 2 | Purchased $6,600 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. | ||
3 | Paid $370 cash for shipping charges on the April 2 purchase. | |||
4 | Returned to Lyon Company unacceptable merchandise that had an invoice price of $500. | |||
17 | Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise. | |||
18 | Purchased $13,900 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 $13,900 owed on the April 18 purchase. | |||
28 | Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount. |
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