Prepare journal entries to record each of the following business transactions, assuming the buyer uses the periodic inventory system and the gross method.

Question

Record of purchases, returns and discounts

Abr.		2		Purchased $6,200 of Lyon Company merchandise with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point.
		3		You paid $347 cash for shipping on your April 2 purchase.
		4		Returned unacceptable merchandise to Lyon Company that had an invoice price of $800.
		17		He sent a check to the Lyon Company for the April 2 purchase, net of discount and returned merchandise.
		18		Purchased $13,100 of merchandise from Frist Corp. with credit terms of 1/10, n/30, invoice dated April 18, and FOB destination.
		21		After negotiations, he received an award of $600 from Frist for the $13,100 owed on the April 18 purchase.
		28		Check sent to Frist paying for April 18 purchase, net of allowance and discount.

Answer rating: 100% (QA)

April 2 Debit Purchases 6200 Credit Accounts Payable 6200 To record the purchase of merchandise from ... View the full answer