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Prepare journal entries to record the following transactions for a retail store

Accounting May 22, 2021

Prepare journal entries to record the following transactions for a retail store. Assume a perpetual inventory
system.
Apr. 2 Purchased merchandise from Lyon Company under the following terms: $4,600 price, invoice
dated April 2, credit terms of 2y15, ny60, and FOB shipping point.
3 Paid $300 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 merchandise from Frist Corp. under the following terms: $8,500 price, invoice dated
April 18, credit terms of 2y10, ny30, and FOB destination.
21 After negotiations, received from Frist a $1,100 allowance on the April 18 purchase.
28 Sent check to Frist paying for the April 18 purchase, net of the discount and allowance.

Expert Solution

Answer:

 

Date Account Title Debit Credit
2.April Purchase 4600  
  Accounts Payable   4600
       
3.April Freight Inward 300  
  Cash   300
       
4.April Accounts Payable 600  
  Purchase Return   600
       
17.April Accounts Payable 4000  
  Discount Received   80
  Cash   3920
       
18.April Purchase 8500  
  Accounts Payable   8500
       
21.April Accounts Payable 1100  
  Allowance Received   1100
       
28.April Accounts Payable 7400  
  Discount Received   148
  Cash   7252
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