Chrome Fle Edit View History Bookmarks People Window Help C Secure https:/newcon
ID: 2406672 • Letter: C
Question
Chrome Fle Edit View History Bookmarks People Window Help C Secure https:/newconnect.mheducation Chapter 4 Help Save&Exit; Submit Check my Prepare journal entries to record each of the following merchandising transactions assuming that the buyer uses the periodic inventory system and the gross method 3.03 Apr. 2 Purehased $4,600 of merchandise from Iyon company wish eredit terma of 2/is, n/6o, ievoice dated April 2, and Tos shipping poist 3 Paid $300 cash for ahipping charges on the April 2 purehase 4 Returned to Lyon Conpany unacceptable merchandise that had an inveice priee of $600 17 Seat a check to Lyon Company for the April 2 parchase, net of the discount and the returned 18 Purchased $8,580 of nerchandiss fron Frist Corp. with credit terma of 1/10, /30, Isvolce dated April 21 After negotiations, received fron Prist $500 a1lowance toward the 8,500 oved on the April 1 purehase 28 Sest eheck to Prist paying for the April 18 purehase, net of the allovanee and the diseouns Journal entry worksheet Purchased $4,600 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point. Note: Enter Prev 29 o39 Next> ?Explanation / Answer
SOLUTION
Date Account titles and Explanation Debit ($) Credit ($) April 2 Purchases 4,600 Accounts payable - Lyon 4,600 April 3 Purchases 300 Cash 300 April 4 Accounts payable - Lyon 600 Purchases return 600 April 17 Accounts payable - Lyon (4,600 - 600) 4,000 Purchase Discount (4,000 * 2%) 80 Cash 3,920 April 18 Purchases 8,500 Accounts payable - Frist 8,500 April 21 Accounts payable - Frist 500 Cash 500 April 28 Accounts payable - Frist (8,500 - 500) 8,000 Purchase discount (8,000 * 1%) 80 Cash 7,920