Prepare journal entries to record the following transactions for a retail store. Assume a perpetual inventory system.
April 2nd- Purchased Merchandise from Lyon Company under the following terms: $4,600 price, invoice dated April 2, credit terms of 2/15, n/60, and FOB shipping point.
April 3rd- Paid $300 for shipping charges on the April 2nd purchase.
April 4th- Returned to Lyon Company unacceptable merhcandise that had an invoice price of $600.
April 17th- Sent a check to Lyon Company for the April 2nd purchase, net of the discount and the returned merchandise.
April 18th- Purchased merchandise from Frist Corp. under the following terms: $8500 price, invoice dated April 18, and credit terms of 2/10, n/30 and FOB destination.
April 21st- After negotiations, received from First a $1,100 allowance on April 18th purchase.
April 28th- Sent check to First paying for the April 18th purchase, net of discount and allowance.