ACC291T Principles.docx - Exercise 5-3 Recording purchases,...

Exercise 5-3 Recording purchases, purchases returns, and
purchases allowances LO P1
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 2/15, n/60, invoice dated April 2, and
FOB shipping point.
3 Paid $300 cash for shipping charges on the April 2
purchase.
4 Returned to Lyon Company unacceptable merchandise that