Concept explainers
Exercise 5-3
Recording purchases, purchases returns, and purchases allowances
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, and FOB destination.
21 After negotiations, received from Frist a $500 allowance toward the $8,500 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 5 Solutions
Fundamental Accounting Principles
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education