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 $4,600 of merchandise from Lyon Company with credit terms of 2/25, n/80, invoice dated April 2, and F06 shipping point. 3 Paid $300 cash for shipping charges on the April 2 purchase. • Returned to Lyon Company unacceptable merchandise that had an invoice price of $600. 17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returns merchandise. 18 Purchased S8,500 of merchandise from Ffitt Corp. with credit terms of 1/10, n/30, invoice dated April 18, and F06 destination. 21 After negotiations, received from frist a $500 allowance toward the $8,500 owed on the April 18 purchase. 28 Stilt check to hitt paying for the April 18 purchase, net of the allowance and the discount.