Concept explainers
Exercise 4-3 Recording purchase, purchase returns and purchase allowances P1
Prepare
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 had an invoice price of $600.
17 Sent a check to Lyon company for the April 2 purchase, net of the discount and the returned merchandise.
18 Purchased $8,500 of merchandise from Frist Corp. with credit terms of 1/10, n/30, invoice dated April 18, FOB destinations.
21 After negotiations, received from Frist a $500 allowance towards the owed on the April 18 Purchase.
28 Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount.

Trending nowThis is a popular solution!

Chapter 4 Solutions
FINANCIAL & MANAGERIAL ACCOUNTING
- A company's Accounts Receivable balance at Dec. 31 was $120,000, and there was a debit balance of $600 in the Allowance for Doubtful Accounts. The firm estimates that 4% of the A/R will prove to be uncollectible. After the appropriate adjusting entry is made for estimated credit losses, what is the net realizable value of the accounts receivables at year-end?helparrow_forwardSeaside Manufacturing Incarrow_forwardnonearrow_forward
- What is the company's average collection period of this financial accounting question?arrow_forwardA company's Accounts Receivable balance at Dec. 31 was $120,000, and there was a debit balance of $600 in the Allowance for Doubtful Accounts. The firm estimates that 4% of the A/R will prove to be uncollectible. After the appropriate adjusting entry is made for estimated credit losses, what is the net realizable value of the accounts receivables at year-end?arrow_forwardchoose best answer mearrow_forward
- College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningCollege Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College PubCorporate Financial AccountingAccountingISBN:9781305653535Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning



