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Homework answers / question archive / Prepare journal entries to record the following transactions for a retail store

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

Accounting

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 $4,000 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB 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 $500. April 17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise. April 18 Purchased $7,300 of merchandise from Frist Corporation with credit terms of 1/10, n/30, invoice dated April 18, and FOB destination. April 21 After negotiations over scuffed merchandise, received from Frist a $500 allowance toward the $7,300 owed on the April 18 purchase. April 28 Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount. 
View transaction list 
Journal entry worksheet 
1 
2 3 4 5 6 7 
Purchased $4,000 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. 
Note: Enter debits before credits. 
Apr 02 
• 
Record entry 
gear entry 
Kew general journal 

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Journal Entries:    
Date Account Titles and Explanation Debit Credit
02-Apr Merchandise Inventory 4000  
  Accounts Payable - L Company   4000
  (To record purchase of inventory)    
       
03-Apr Merchandise Inventory 300  
  Cash   300
  (To record shipping charges paid)    
       
04-Apr Accounts Payable - L Company 500  
  Merchandise Inventory   500
  (To record return of merchandise)    
       
Apr-17 Accounts Payable - L Company 3500  
  Merchandise Inventory   70
  Cash    3430
  (To record payment made on purchase)    
       
Apr-18 Merchandise Inventory 7300  
  Accounts Payable - F Corp.   7300
  (To record purchase of inventory)    
       
Apr-21 Accounts Payable - F Corp. 500  
  Merchandise Inventory   500
  (To record allowance received)    
       
Apr-28 Accounts Payable - F Corp. 6800  
  Merchandise Inventory   68
  Cash    6732
  (To record payment made on purchase)    
Journal Entries:      
Date Account Titles and Explanation Debit Credit
02-Apr Merchandise Inventory 4000  
  Accounts Payable - L Company   4000
  (To record purchase of inventory)    
       
03-Apr Merchandise Inventory 300  
  Cash   300
  (To record shipping charges paid)    
       
04-Apr Accounts Payable - L Company 500  
  Merchandise Inventory   500
  (To record return of merchandise)    
       
Apr-17 Accounts Payable - L Company =4000-500  
  Merchandise Inventory   =3500*2%
  Cash    =3500-70
  (To record payment made on purchase)    
       
Apr-18 Merchandise Inventory 7300  
  Accounts Payable - F Corp.   7300
  (To record purchase of inventory)    
       
Apr-21 Accounts Payable - F Corp. 500  
  Merchandise Inventory   500
  (To record allowance received)    
       
Apr-28 Accounts Payable - F Corp. =7300-500  
  Merchandise Inventory   =6800*1%
  Cash    =6800-68
  (To record payment made on purchase)    

 

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