mheducationcom APTER S CLASSWORK 1 Help S Prepare journal en

mheducation.com APTER S CLASSWORK 1 Help S Prepare journal entries to record the following transactions for a retail store. The company uses a perpetual inventory system and the gross method pr 2 Purchased 37, 000 of nerchandise from tron Company vith eredit teras of 2/5, n/6, invoice dated April 2, and shipping poin Paid $250 cash tor shipping charges on the ApeLl 2 purehase Returned to Iyon Company seacceptable merchandise that hed an invoice price ot $800. 17 Sent a check to Lyon Company for the April 2 parchase, met of the discount and the returned nerchandise. 18 Purehased S 13.300 of norehandie tron rriat Corp. with eredit tema of 1/10· n/n, snuosce dated April 21 After negotiation, received tra. Priat·“t allowance toward the S13, 300 and on the April 1, purehase. 21 Sent ebeek to trist paying for the April 18 parchase, set of the allovance and the discount Accounts payable Lyon 7,000 Prevof Next 3 5 6 8

Solution

1.

April 2 Merchandise inventory ……………..7,000

                       Accounts payable – Lyon …………… 7,000

2.

April 3 Merchandise inventory ……………..250

                       Cash ………………………………..250

3.

April 4 Accounts payable – Lyon ……………800

                      Merchandise inventory …………… 800

4.

April 17 Accounts payable – Lyon ……………6,200

                       Merchandise inventory ……………124

                       Cash …………………………………….6,076

Explanation
Apr.         17:         Cash paid within discount period less returns = [($7,000 $800) × (100% 2%)] = $6,076.         

5. April 18 Merchandise inventory ………..13,300

                             Accounts payable - Frist ……….. 13,300

6. April 21 Accounts payable – Frist ………. 400

                           Merchandise inventory ……… 400

7. April 28 Accounts payable – Frist …….. 12,900

                           Merchandise inventory ……………129

                           Cash ……………………………………..12,271                

Apr.         28:         Cash paid balance within discount period = [($13,300 $400) × (100% 1%)] = $12,271