Exerclse $5-3($Static$)$ Recording purchases, purchases returns, and purchases allowances LO P$1$

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 $$4,60$ of merchandise from Lyon Company with credit terms of $\frac{2}{15},\frac{n}{60},$ invoice dated April $2,$ and F$0$B shipping

point.

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

April $4$ Returned to Lyon Company unacceptable merchandise that had an invoice price of $$60.$

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

April $18$ Purchased $$8,500$ of merchandise from Frist Corporation with credit terms of $\frac{1}{10},\frac{n}{30},$ invoice dated April $18,$ and F$0$B

destination.

April $21$ After negotiations over scuffed merchandise, received from Frist a $$50$ allowance toward the $$8,50$ owed on the April $18$

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

Journal entry worksheet

$1$

$2$

$3$

$4$

$5$

$6$

$7$

Purchased $$4,600$ of merchandise from Lyon Company with credit terms of

$\frac{2}{15},\frac{n}{60},$ invoice dated April $2,$ and FOB shipping point.

Note: Enter debits before credits.