Refer to Exercise 5-3 and prepare journal entries to record each of the merchandising transactions assuming that the buyer uses the periodic inventory system and the gross method.

Data From Exercise 5-3

Prepare 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 $4,600 of merchandise from Lyon Company with credit terms of 2∕15, n∕60, invoice dated April 2, and FOB shipping point.

3. Paid $300 cash for shipping charges on the April 2 purchase.

4. Returned to Lyon Company unacceptable merchandise that had an invoice price of $600.

17. Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise.

18. Purchased $8,500 of merchandise from Frist Corp. with credit terms of 1∕10, n∕30, invoice dated April 18, and FOB destination.

21. After negotiations over scuffed merchandise, received from Frist a $500 allowance toward the $8,500 owed on the April 18 purchase.

28. Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount.