Purchased $5,400 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point.

Prepare journal entries to record each of the following transactions. The company records purchases using the gross method and a perpetual inventory system.

Aug.		1		Purchased merchandise with an invoice price of $87,000 and credit terms of 2/10, n/30.
Aug.		11		Paid supplier the amount owed from the August 1 purchase.

No	Date	General Journal	Debit	Credit
1	Aug 01	Merchandise inventoryselected answer correct	87,000selected answer correct	not attempted
		Accounts payableselected answer correct	not attempted	87,000selected answer correct
2	Aug 11	Accounts payableselected answer correct	87,000selected answer correct	not attempted
		Merchandise inventory 2% of 87000selected answer correct	not attempted	1,740selected answer correct
		Cashselected answer correct	not attempted	85,260selected answer correct

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4.

Prepare journal entries to record each of the following transactions. The company records purchases using the gross method and a perpetual inventory system.

Sept.		15		Purchased merchandise with an invoice price of $62,500 and credit terms of 5/5, n/15.
Sept.		29		Paid supplier the amount owed on the September 15 purchase.

No	Date	General Journal	Debit	Credit
1	Sept 15	Merchandise inventoryselected answer correct	62,500selected answer correct	not attempted
		Accounts payableselected answer correct	not attempted	62,500selected answer correct
2	Sept 29	Accounts payableselected answer correct	62,500selected answer correct	not attempted
		Cashselected answer correct	not attempted	62,500selected answer correct

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5.

Prepare journal entries to record the following transactions for a retail store. The company uses a perpetual inventory system and the gross method.
  

Apr.		2		Purchased $5,400 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point.
		3		Paid $230 cash for shipping charges on the April 2 purchase.
		4		Returned to Lyon Company unacceptable merchandise that had an invoice price of $400.
		17		Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise.
		18		Purchased $10,100 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 $10,100 owed on the April 18 purchase.
		28		Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount.

No	Date	General Journal	Debit	Credit
1	Apr 02	Merchandise inventoryselected answer correct	5,400selected answer correct	not attempted
		Accounts payable—Lyonselected answer correct	not attempted	5,400selected answer correct
2	Apr 03	Merchandise inventoryselected answer correct	230selected answer correct	not attempted
		Cashselected answer correct	not attempted	230selected answer correct
3	Apr 04	Accounts payable—Lyonselected answer correct	400selected answer correct	not attempted
		Merchandise inventoryselected answer correct	not attempted	400selected answer correct
4	Apr 17	Accounts payable—Lyon 5000-400selected answer correct	5,000selected answer correct	not attempted
		Merchandise inventory 2% of 5000selected answer correct	not attempted	100selected answer correct
		Cashselected answer correct	not attempted	4,900selected answer correct
5	Apr 18	Merchandise inventoryselected answer correct	10,100selected answer correct	not attempted
		Accounts payable—Fristselected answer correct	not attempted	10,100selected answer correct
6	Apr 21	Accounts payable—Fristselected answer correct	500selected answer correct	not attempted
		Merchandise inventoryselected answer correct	not attempted	500selected answer correct
7	Apr 28	Accounts payable—Fristselected answer correct	9,600selected answer correct	not attempted
		Merchandise inventory 1%selected answer correct	not attempted	96selected answer correct
		Cashselected answer correct	not attempted	9,504