Apr. 2 Purchased $3,600 of merchandise from Lyon Company with credit terms of 2/15 n/60, invoice...
Question:
| Apr. 2 | Purchased $3,600 of merchandise from Lyon Company with credit terms of 2/15 n/60, invoice dated April 2 and FOB shipping point |
| 3 | Paid $202 cash for shipping charges on the April 2 purchase |
| 4 | Returned to Lyon Company unacceptable merchandise that had an invoice price of $800 |
| 17 | Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise |
| 18 | Purchased $7,900 of merchandise from Frist Corp. with credit terms of 1/10, n/30, invoice dated April 18 and FOB destination |
| 21 | After negotiations, received from Frist a $500 allowance toward the $7,900 owed on the April 18 purchase |
| 28 | Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount |
Required:
Prepare journal entries to record each of the following merchandising transactions assuming that the buyer uses the periodic inventory system and the gross method.
Journal entry
Every business entity has a lots of transaction going on, and the General journal is a place where every entry is recorded at the first step. Each transaction is recorded for a debit and credit balance thus nullifying the effect in general.
Answer and Explanation: 1
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View this answer| Date | Accounts title | debit | credit |
| Apr 2 | Purchase | 3600 | |
| Account payable-Lyon company | 3600 | ||
| (To record merchandise purchase) | |||
| April 3 | Freight-in | 202 | |
| ... |
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