Apr. 2 Purchased $3,000 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice...

Apr.	2	Purchased $3,000 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point.
	3	Paid $380 cash for shipping charges on the April 2 purchase.
	4	Returned to Lyon Company unacceptable merchandise that had an invoice price of $500.
	17	Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise.
	18	Purchased $5,300 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 $600 allowance toward the $5,300 owed on the April 18 purchase.
	28	Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount.

Expert Solution

Journal Entries
Sr. No.	Account Title and explanation	Debit	Credit

Apr , 02	Merchandise Account	$ 3,000
	To Lyon Company		$ 3,000
	(To Record the purchase of merchandise)


Apr , 03	Transport charges	$ 380
	To Cash		$ 380
	(to Record the shipping charges)


Apr , 04	Lyon Company	$ 500
	To Merchandise Account		$ 500
	(To record the return of merchandise)


Apr , 17	Lyon Company	$ 2,500
	To Cash ($ 3000 - $ 500 - $ 50)		$ 2,450
	To Purchase discount($ 2500 X 2%)		$ 50
	(To record the payment)



Apr , 18	Merchandise Account	$ 5,300
	To First Corp		$ 5,300
	(To Record the purchase of merchandise)




	First Corp	$ 600
Apr , 21	To Allowance for purchase		$ 600
	(To Record the allowance for purchase)



	First Corp	$ 4,700
Apr , 28	To Cash($4700-$47)		$ 4,653
	To Purchase discount ($ 4,700 X 1%)		$ 47
	(To Record the final payment)

ekkarill92 answered 2 years ago

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